NEW ZEALAND’S BUOYANT FINANCES

New Zealand Times, Volume LII, Issue 12199, 25 July 1925, Page 4

NEW ZEALAND’S BUOYANT FINANCES

BUDGET POINTS A HANDY SUMMARY FIGURES FOR THE FINANCIAL YEAR HOW NEW ZEALAND STANDS The year’s revenue totalled £23,643,000, and the expenditure £27,399,200, leaving a credit balance of £1,243,800. The revenue was greater than in the previous year by £682,630. Expenditure exceeded the previous year by £1,251,196. . The salaries and wages increased by £672 000. The bqlanee forward at March 31st, 1925, was £4,160,806. ’ The amounts transferred from accumulated surpluses to Public Works Fund were £1,000,000, and to Loans Redemption Account £1,052,130. _ Thdre are no revenue Treasury bills outstanding. The public works expenditure (including transfer to main ' highways) was £4,367,440. The electric supply expenditure totalled £847,478. ; Respecting main highways; the receipts .(Revenue Account, £459,160) and Construction Fund, £226,000) totalled £685,160. The expenditure Out of revenue was £127,458, and out of the Construction Fund £225,454, totalling £352,912. The Customs and excise revenue amounted to £7,689,192, an increase over 1923-24 of £327,409. The exports for the financial year were valued at £54,771,158, and the imports at £49,821,095, the total trade being £104,592,253 worth.

The excess of exports over imports was £4,960,063.

Land tax produced £1,335,251, and income tax £3,386,052. The land and income tax was leas than the previous year, due to reductions and concessions, by £486,691. Stamp and death duties realised £3,240,332.

Working railways—Receipts were £7,112,524, and working expenses £5,545,416. The excess of receipts was £1.567,108. Post and Telegraph receipts totalled £2,866,882, and expenditure £2,413.436, an excess of receipts' of. £453,446. 735,158 depositors had £45,267,708 at credit in the Post Office Savings Bank at .the end of the year. War loan certificates to the value of £675,163 were redeemed during the year.

Expenditure on education amounted to £3,649,875. \

,■ £40,292 was paid in maternity allowances: '

Discharged 1 soldiers’ settlement figures irun as follows:—Total advances in 1924-25, £717,840; receipts, £1,591,'483: total capital provided for soldiers’ settlement, £26,676,386.’ As to the revaluation of farms bv the Dominion Revaluation Board, the reduction in capital value of leaseholds was. £1,608,000, and the reduction in mortgages was £672,000, making total reductions of £2,280,800! Since 1914 the State Advances Department has advanced £26,143,191. The assistance rendered by the State

Advances Department for housing in the last six years totals £20,164,923 for 83,365 houses. - ' The Crown estates at Samoa show profits. German, reparation payments to June -30th total £103.669. Our net debt is £214,357,808. * Loans paid off during the year amount to £3,249,966.

GOOD NEWS! LIGHTER TAXATION NEW SCHEDULE PROPOSED V FULL DETAILS LATER The question of taxation and its equitable distribution has engaged the attention of the Government with a view to further relieving industry of the. burdens imposed on it by the high taxation of war years, said the Minister for Finanoe in the Budget Statement last night While allotting a portion of our surplus to concessions )n, pensions and in other directions, further adjustments in the rates are desirable if individual initiative and energy in developing our resources and output are to be encouraged. Moreover, the investment of capital outside the Dominion is induced by high taxation. Taxation, which might have the appearanoe of falling directly on the person or concern taxed, does not wholly do so, but is largely borne by the consumer, and as a consequence we have a high prioelevel and increased cost of living. Reductions in taxation also assist in diverting capital investments from taxfree securities into trade and developmental purposes. The Government has now under consideration the adoption of a new income tax sohedule following the lines discussed by the Taxation 'Commission. The proposed new schedule would reduce the maximum rate to 4s 6d from the present rate of 4s 10 2-3 din the pound, and the minimum rate from 8d to 7d in the pound, while between those rates all incomes would receive concessions. The present schedule', which still stands in the Act at rates up to the maximum, of 7s 4d in the pound and has been subject to percentage reductions from time to time' would be done away with by the adoption i of straight-out rates. i Full details will be submitted later to Parliament. REPEAL OF MORTGAGE DUTY “I have referred to the desirability of encouraging loans on mortgages, particularly to aid farmers,” added the Minister. (‘‘lnvestment on mortgage in recent years has suffered in comparison with investments in stocks, debentures, . etc., hut the indications are that-the mortgage is again becoming more sought'-, after, and, moreover, k trend in that direction is noted in Australia within "the last few months. “The income tax reductions _ which the Government is now considering should facilitate investment on _ mortgage 'by reducing the rate of inoome tax down to a parity with debenture tax. and, as indicated, it is proposed to repeal the mortgage duty of 5s per cent.”