THE NATIONAL ACCOUNTS

New Zealand Herald, Volume LXXII, Issue 22262, 9 November 1935, Page 12

THE NATIONAL ACCOUNTS

So far as the position at the end of half a year is indicative, the national accounts to September 30, a summary of which has just been issued, promise well for the full year. The revenue has increased by nearly £300,000 compared with the figure for the first half of last year. The yield of taxation is £200,000 more in round figures. This, of course, is based on the same rate of taxation as that prevailing last year. It is too early for income tax to have influenced the amount, consequently the rise must be attributed in the main to the two leading departments of indirect taxation, customs duties and sales tax. The income from these depends upon general commercial activity; its increase is the natural result of an increased import trade, and a greater business turnover. So far, therefore, the revenue reflects the measure of economic recovery which has been attested before in other contexts. The contribution of interest to the accounts is some £40,000 smaller, but this may be merely a book-keeping variation. At first glance,'the expenditure side of the accounts seems to promise very well for the year. The total is £1,122,000 less than that for the first half of 1934-35. Very little reliance can be placed on this as an indication for the whole year. Payments are not all made at the same time, year by year, and it is not by any means a guarantee that the outgoings for the full 12 months will be substantially reduced because the expenditure to September 30 has shown this downward movement The fact that the annual appropriations show a reduction suggests that a careful hand is being kept on departmental expenditure, but that is all. It is satisfactory to find the accounts promising as well as they do. The second half of the year will have to carry certain expenditure not allowed for when the Budget estimates were framed —the ' retrospective payment of salary increases, for example. However, there is not much to be gained from detailed comparisons or conjectures. The evidence of the accounts, considered broadly, is that the Budgetary position is being well maintained in the face of considerable, if diminishing, difficulties.