DOMINION'S FINANCES.

New Zealand Herald, Volume LXIX, Issue 21100, 6 February 1932, Page 10

DOMINION'S FINANCES.

FURTHER FALL IN REVENUE. TAXATION BELOW ESTIMATES. HIGHER INTEREST CHARGES. LARGER TEMPORARY DEFICIT. [BY TELEGRAPH. PRESS ASSOCIATION. J WELLINGTON, Friday. A supplementary Gazette issued to-day contains tho public accounts for tho nine months ended December 31. The Minister of Finance, tho Hon. W. Downio Stewart, has issued a statement in which ho says tho revenue for the nine months amounted to £12,443,166, compared with £14,868,276 received during tho corresponding period of last financial year. A considerable falling-off was allowed for in the Budget. The land tax receipts to December 31 amounted to £504,000, and though this total will be increased before tho close of I the year, it is clear the Budget estimate, £625,000, will not be reached. Income tax is not payable until this month, so the outcome in regard to that item cannot bo gauged at present. Shrinking Yield of Customs. Receipts from other items of taxation include customs, £4,324,034; beer duty, I £466,350; motor vehicles duties and j licences, £1.450.548; and stamp and death j duties, £2,068,769. The cutsoms receipts arc approximately | £560,000 short of the appropriate pro- j portion of the estimate for the year. The shortage has been steadily growing as tho months go by. It is now evident that receipts for the year will fall considerably short of tho Budget estimate. Beer duty should reach the esLimate. The revenue from motor vehicles duties and licences for the nine months was ahead of the estimate, but, as this revenue is at present earmarked for roading purposes, the Consolidated Fund does not benefit by such additional receipts. Tho position in regard to stamp and death duties has been uncertain for some months, and though the receipts for the nine months are only behindhand to the extent of £155,000, tho trend of death duties, racing revenue, amusement tax, etc., is definitely downward. The indications are that there will be a substantial shortage for the year. Railways Deficiency. Interest receipts amounted to £1.855,383, and other receipts to £1,454,006, but as theso receipts for the most part are not spread evenly over the year, they cannot bo judged on a proportionate basis. Among tho interest receipts the most doubtful item is railway interest. The railway revenue has continued to fall, and though tho board is endeavouring to offset the fall by savings in expenditure, it is probable the amount that will be paid to the Consolidated Fund will fall by £IOO.OOO or more short of the Budget estimate. Under "other receipts" some large amounts will be credited in the last quarter of the year, but some smaller items, consisting of fees and revenues from lands, aro lagging somewhat, and possibly will be a little short at the end of the year. In fact, throughout the financial year tho revenue as a whole has continued to slip. Even now, wo do not appear to havo reached tho end of it. Survey of Expenditure. On the other side of the account, the net expenditure for the nine months, compared with tho proportionate part of the estimate, is as follows: Proportion Expendi- Under Debt Estimate. ture. Proportion. services . £7,622.323 £7.708,554 £113.774 Other statutory 5,404.557 4.090,897 773.G90 Annual votes 5.183,755 4.822,203 3C1.552 Totals . £lB,-170,670 £17,221,054 £1.249,016 Tho Minister said the position in regard to expenditure is not as favourable as theso figures would indicate. The underproportion on account of debt services is clue to tho fact that only about one-third of the amount provided for repayment of debt had been used up to December 31. Interest payments aro in excess of the proportion of the estimate, and though this item is affected by the dates upon which pavmens are due, it is estimated the expenditure for the year will exceed the estimate. This excess will bo due to tho fact that issues of Treasury bills and Treasury bill rates havo been greater than anticipated. Expenditure under other permanent appropriations includes hospital and unemployment subsidies, pensions and transfers of earmarked revenues to tho highways account and to local bodies. These items aro subject to accounting fluctuations, and it is not anticipated there will be any saving on the year's transactions. In fact, the unemployment | subsidies may exceed the estimate, j In regard to annual votes, the position j shown is quite satisfactory, although ( undrr-cxpenditure to the extent of £.170,000 is accounted for by imprests outstanding. From the figures for the nine months it is clear that the public revenues are now reflecting in a very marked degree the results of tho economic depression. Tho accounts for the nine months compare as follows with those for the corresponding period of tho previous year:— 1930-31. 1931-32. Decrease. Revenue £14,868,276 £12,413,166 £2,425,110 Debt services 8,966,323 7,708.554 1,257,769 Other 1 statutory 3.888.15-1 4.690,897 *802,743 Annual 5.526,088 4,822,203 703,885 18,380,565 17,221.654 1.158,911 'Excess £3,512.289 £4.778,488 *£1,206,19:) ' 'lncreases. Tho final estimates, accompanying (he ' Financial Statement made on October 6, anticipated a total revenue, for the year ( of £24,666,000, against £23,068,031 in y 1930-31. Expenditure was estimated at £24,627,561, as against £24.708.042. This year's estimates included £10,429,771 for the debt services, £7,286,117 under statutory authority, and £6,9.11,673 under annual appropriations. v In jiddit on to revenue from ordinary | i sources, the Budget provided for tho use ;■ of £1,490.000 from reserves, and antici- 1 pated that the Post Office would contri- I 1 ute £1,090,000 of surplus profits, in addition io the payment of £535,000 as in- I tcrest on its capital liability. r l ' t.