A QUARTER'S ACCOUNTS

New Zealand Herald, Volume LXXII, Issue 22179, 5 August 1935, Page 8

A QUARTER'S ACCOUNTS

As the acting-Minister of Finance has indicated in his comments on the public accounts for the first quarter of the financial year, too much should not be deduced from apparent variation' 3 in the figures compared with those for the corresponding portion of the year preceding. As an instance, a fall of £30,000 in the yield of taxation might appear an unfavourable turn in revenue without the accompanying explanation. The statement shows, however, that under the two most important all the year round headings, customs and sales tax, there has been a substantial increase. The fall is largely attributable to a lower yield from stamp and death duties, always a fluctuating item, and one which was exceptionally productive last year. Still the combined increase in yield by customs and sales tax more than covers this fall in the other item. There must, consequently, have been lower returns under other headings, but no serious alarm need be felt at this early stage in the year. On the other hand, the increase in revenue as a whole must be recognised as resulting from another of those windfalls which did so much to produce last year's surplus. It is caused by a substantial rise shown under the heading "other receipts." Though the profit from most of the gold sold by the Reserve Bank was included in last year's accounts, there has been one sale to the nominal value of £•200,000 since March 31, and it can be taken for granted that the Consolidated Fund has already received the benefit. Comment on expenditure has to be equally qualified by the fact that payments are not always made at the same time in succeeding years. Therefore a comparison of the accounts for a single quarter can be very deceptive. It is satisfactory to learn that interest on the public debt is less by £310,000 because no provision for Treasury bills was necessary. The year ended without any floating debt being carried forward. Not only were the bills owing to the banks under the exchange policy redeemed, but all revenue bills had been paid off by March 31. The saving in interest is a real one, and if it can be maintained should help to facilitate that taxation relief which is an outstanding necessity.