THE NATIONAL ACCOUNTS

New Zealand Herald, Volume LXIX, Issue 21253, 5 August 1932, Page 12

THE NATIONAL ACCOUNTS

FIRST QUARTER'S RESULTS REVENUE DECLINE OF £250,000 EXPENDITURE LESS BY £935,000 PRIME MINISTER SATISFIED [by telegraph—press association] WELLINGTON, Thursday Commenting upon figures published in the Gazette to-day setting out the Consolidated Funds accounts for the three months ended June 30, the Prime Minister, as acting-Minister of Finance, stated that the revenue for the period amounted to £3,564,907, compared with £3,814,724 for the corresponding period of the previous year, there being a decrease of £249,817. Receipts from taxation as a whole show a net increase of £7660, which may be regarded as satisfactory, since a heavy fall-ing-off was anticipated in the preliminary Budget estimates. Indirect taxation, customs revenue and beer duty show a comparative increase for the three months of approximately £200,000. This constitutes a promising start for the year. Motor vehicles duties and licences, however, show a declino of £132,000 and stamp and death duties of £73,000. Death duties normally fluctuate, but, apart tfrom this, some fall-ing-off in these items is expected. Land and income tax payments are not due until later in the year, so the present figures give no indication of the probable ontcomp of these items. Interest Reductions and Concessions ; Revenues from interest as a whole are £230,000 less than were received in the corresponding period last year, but this is to some extent due to accounting fluctuations, which will adjust themselves during the year. Interest on the public debt redemption fund reflects the reductions and concessions in interest arising out of presi ent economic conditions, *whil© the item ; for interest on public moneys shows a reduction due to the fall in the volume of investments and the low rates of interest ruling in London. These reductions were generally anticipated. "Other receipts" show a small decrease of £27,000, but the items are, for the most part, up to expectations, and do not call for comment. Turning to the expenditure side of the : accounts, the following position is dis- : closed:— 1 1931-32 1932-33 ' Decline | Permt. appins. £2,984,10? £2,197.948 £7B C,159 1 Other charges . 1,105,331 410,643 694,688 < I Total .. 4.039,438 2,009,591 1,480,847 Annual apprns. 1,460,624 2,006,370 *545,746 Grand total £5,550,002 £4,614,961 £9357i01 •Increase. Permanent and Annual Charges A decrease of £786,000 under debit charges is accounted for principally by the suspension of payments on the funded war debt in accordance with the extension of the Hoover moratorium. The decrease of £695,000 under permanent appropriations, other services, is substantially due to the change in accounting procedure arising out of the Finance Act, 1932, which provided that expenditure on the major portion of these services shall in future be provided by annual appropriations. This took effect from April 1, but the expenditure, charged as above to May 10, must remain as indicated until the current year's appropriations are passed. For comparative purposes, therefore, this expenditure must be considered in conjunction with that under annual appropriations, when a net comparative decrease of £149,000 is disclosed. It may be mentioned, however, that this year's expenditure includes £300.000 for "exchange On London remittances, which was not a factor during the first three months last year. It will thus be apparent that expenditure generally is showing the result of the economies effected. To sum up, the position disclosed can be regarded as satisfactory, in that the revenue generally is quite up to expectations, while expenditure has been kept under close control and reflects the economies effected.