INCOME OF STATE

New Zealand Herald, Volume LXXV, Issue 22949, 29 January 1938, Page 14

INCOME OF STATE

TOTAL TO DECEMBER 31 INCREASE OF £2,152,000 £2,146,000 MORE' TAXATION EXPENDITURE UP £848,000 [BV TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Friday The Minister of the Hon. W. Nash, announced to-day that the public accounts for the nine months dnded December 31 had been completed,' and as soon as they had been audited the usual particulars would be published in the Gazette. In the meantime the Minister has supplied a summary of the position. The revenue credited to the Consolidated Fund during the nine months amounted to £20,740,000, compared with £18,588,000 received during the same period of the previous financial year, an increase of £2,152,000. Expenditure,amounted to £21,930,000, an increase of £848,000. A comparison in tabular form is as follows: — Nino 1037-38 1936-37 Increase months £ £ £ Revenue 20,740 t 000 18,588,000 2,152,000 Expend. 21,030,000 21,082,000 848,000 Deficit . 1,190,000 2,494,000 1,304,000* •Decrease. Details of Revenue Receipts under the principal headings of revenue compare as follows: — 1037-38' 1930-37 Increase Taxation £ £ Si Customs 8,10-1,000 7,120,000 1,008,000 Beer duty 713,000 607,000 106,000 Sales tax 2,083,000 2,202,000 421,000 Highways 2,102,000 1,868,000 294,000. Stamps, etc. . 2,529,000 2,378,000 151,000 Land tax 888,000 987,000 99,000* Income tax 983,000 780,000 203,000 Other taxes 154,000 152,000 2,000 18,306,000 16,160,000 2,146,000 Interest . 1,079,000 1,410,000 331,000* Other receipts 1,355,000 1,018,000 337,000 Total 20,740,000 18,588,000 2,152,000 'Decrease. "It may be noted from, these statistics," said Mr. Nash, "that to date revenue from taxation alone totals £18,306,000, which is £2,146,000 in excess of that received to the end of December, 1936. An increase in revenue was provided for in the current year's Budget, but it is interesting to note that the percentage of receipts to estimates to date, which is probably the most reliable indication of the position, is identical for both periods of nine months, indicating that the estimates are being very closely adhered to. General Tax Increases "All the major headings of taxation, with the exception of land tax, have contributed to the increased revenue, particularly customs and sales tax. In regard to land tax, a reduction in revenue as compared with the previous year was provided for in the Budget. The most uncertain item is, of course, income tax, which is estimated to provide a total of £7,500,000 for the year, of which amount £983,000 has been received to date. As in previous years, the 'great bulk of this tax is paid after December 31. Based on returns which have been examined to date, however, it is anticipated that the Budget estimate will be fulfilled." In regard to expenditure, Mr. Nash stated that the total for the nine months was £21.930.000, £26,045,000 being the proportionate amount of the year's appropriations. Details were as follows: — • PERMANENT APPROPRIATIONS Under Estimate Expenditure Estimate Debt £ £ £ service 7,047,000 5,306,000 1,741,000 Highways 2,295.000 2,067,000 228,000 Exchange 1,275,000 1,323,000 48,000* Other services 449,000 318,000 131,000 Total Permanent 11,066,000 9,014,000 2,052,000 * ANNUAL APPROPRIATIONS Social £ £ £ services 9.051.000 8,150,000 931,000 Other services 5,897,000 4,766,000 1,131,000 Total annual 14,978,000 12,916,000 2.002,000 Grand Total 26,011,000 21,930,000 4,114,000 •Above estimate, „ "The foregoing statistics disclose that on a cash basis the total expenditure to date is £4,114,000 than the relative proportion of the' year's appropriations," continued the Minister, ''permanent appropriations being underexpended to the extent of £2,052,000 and annual appropriations to an amount of £2,062.000. This apparent saving, however, is subject to important qualifications. Payments Late in Year "First, the largest single item, debt services, will be fully expended by the end of the financial year, 'apparent saving at December 31 being due to the fact that certain debt repayment moneys will not be utilised until the end of tho financial year. Secondly, expenditure during the last quarter is invariably heavier than during the other quarters as a result of substantial grants being paid during that period. "It is, of course, impossible at this stage," concluded Mr. Nash, "to speak , with any certainty as to final results for the year, but present indications show that the revenue is adhering very closely to the estimate, while some saving is being effected in regard to expenditure. The revenue position shows that the Dominion generally is in a prosperous condition, and the financial position is essentially very sound."