STATE FINANCES

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

STATE FINANCES

HALF-YEAR'S RETURN

SOUND POSITION SHOWN REVENUE HIGHER BY £298,703 EXPENDITURE £1.122,134 LESS f lIV TELEGRAPH —SPECIAL REPORTER] PAPAROA. Friduy A highly satisfactory position is disclosed in the public accounts for the half-year ended . September 30, which were announced to-day by the Minister of Finance, Mr. Coates. Receipts for tho six months are £10,198,828, an increase of £298,70.'} over tho figure for tho first half of last year, while expenditure totals £11,738,437, a •decrease of £1,122,134 over tho sum paid out in tho corresponding period of 1934-35. A full comparison in tabular form is as follows: — Six months 1935-30 1931-35 hicreaso Revenue £10,108.828 i' 9,900,125 i' 298.,03 Expenditure— „ Perm. 6,718.932, 8,190,5-11 1,471,<>09 Annual Total £11,738,437 £12,800,571 £1,122,134* Excess £1,539,609 £2,900.140 £1,420,837* 'Decrease Budget Estimates Supported "The figures disclosed in the audited accounts support very strongly tho estimates made in the Budget," Mr. Coates said. "This year's financial statement was based on an expected increase in taxation revenue, but decreases were allowed for under the - headings of interest and other receipts. Tho results for tho half-year generally bear out the Budget forecast, the detailed figures being as follows: — REVENUE 1935-30 1934-35 Increase Taxation .. £8,400,101 £8,200,239 £199,805 Interest .. 927,735 9(59,849 42,144* Other receipts 870,989 730,037 140,953 Totals . . £10,198,828 £9,900,125 £298,703 'Decreaso. "Of the total increase of £298,703, buoyancy in taxation receipts is represented by an advanco of £199,865. There are increases of £283,177 in customs receipts and £150,014 in sales tax. Stamp and death duties show a fall of £276,174, but this was expected as abnormal receipts under this heading last year exceeded the estimate by nearly £BOO,OOO. The revenue from land and income tax will not be known until later in the year, but it is confidently anticipated that the Hicome tax returns will exceed the Budget estimate of £4,250,000. percentage Comparison "Normally a greater proportion of the revenue is received in the second half of the year, and probably the best way to test the present position from a budgetary point of view is to work on a percentage basis. Taxation receipts in the first half of last financial year represented 40.64 per cent of the total for the year, while this year the proportion is 40.54 per cent of the full Budget estimate.

"This .year's position is better than it appears as an alteration in tho method of collecting petrol tax causes a lag of one under an arrangement with tlie" companies. Th? delay will be made up before the clow of thd* year. However, as' ■?«>' portion of the highways revenuo is to be retained by the Consolidated Fund, the budgetary position is not affected. Ratios of Revenue Increase "Apart from highways, the percentages for taxation revenue are last year 39.40, this vear 39.70. The maiji sources of Consolidated Fund revenue all show au increased percentage of collection compared with the same period of 193435, the comparative percentages being as follows: —

Six months 1935-Uli 1J34-3o Customs 16.5 M Sales lax .. •• •• 47.H1 "i'.'cf Stump and death duties 48.02 Interest 35,45) .-W.OO Otlier receipts 3G.lv -I.IJ

•Summed up, the revenue figures show that the buoyancy in taxation returns noted last year is being more than maintained, while interest and other receipts are well up to expectations. Main Glasses o! Expenditure "The comparative figures for the main classes of expenditure for the halfyear are as follows: •» EXPENDITURE . 1935-8G 1934-35 Increase Debt service £4.569.039 £5,826.448 £1,257.409* Exchange . 958.013 1.417.081 459.068* 0 pM-rnanent *,191,830 947,012 244.868 T< permnneni £6,718,932 £8,190.541 £1.471.609* S °Bervicee £3.313,070 £3.113.695 £199.375 services 1,706,435 1,056,3J5 150,100 Total annua! £5,019,505 £4,670,030 £349,475 Grunt! ■ totnle • . . £11,738,437 £12,800.571 £1.122.184* •Decrease. "The large decrease under debt services is mostly nominal, as transfers under the Repayment of the I üblic Debt Act were made earlier last year. However, it is estimated there will be a decrease of about £300,000 for the year, due to reduction in interest charges. Tho decrease under exchange is also purely nominal, while the increases shown under the other headings aro in accordance with the proposals for the year. /

"The position as a whole is very gratifying," Mr. Conies concluded. "The figures show that as a result of the measures we have taken in the past the Dominion has returned to a position of Budgetary stability. There is clcar-cut evidence, too, that tho marked improvement generally in economic conditions over the past few years is progressive in its elfect."