THE PUBLIC ACCOUNTS

Otago Daily Times, Issue 21978, 13 June 1933, Page 10

THE PUBLIC ACCOUNTS

A BALANCED BUDGET « SURPLUS OF ABOUT £40,000 FURTHER CALL ON RESERVES EXCHANGE INDEMNITY OPERATIONS . (Per United Press Association.) WELLINGTON. June 12. A supplement to the Gazette published to-day contained the audited accouilts for the past financial year. Commenting upon the figures, the Minister of Finance (Mr J. G. Coates) stated that as indicated in his preliminary press statement issued shortly after the close of the financial year, the year dosed with a balanced Budget and a sma ll surplus. This had now been defined as approximately £40,000, and, in view of the serious, position which had to be faced when the year opened, this would, it was felt, afford general satisfaction. The Budget provided for reducing a huge prospective deficit to not more than £1,010,000, said the Minister, but as the year progressed it became evident thaj; the result for the. year- would be much nearer a balance than .this. The final results disclosed a surplus of some £40,000, which had been made possible partly by reason of revenue buoyancy totalling £938,000 and partly by way of net economies totalling £112,000.

REVENUE RETURNS It will be seen, the Minister proceeded, that the revenue for the past year when compared with-the Budget estimates discloses an excess of receipts over the Budget estimates as follows: Budget eat., Receipts, Excess of 1932-33. 1932-33. Receipts. £ £ £ Taxation .. 14,800,000 15,005,206 805,206 Interest .. 2,550,000 2,641,710 91,710 Other receipts 4,280,000 4,321,605 41,605 Totals .. 21,630,000 22,568,521 938,521 The major excess of receipts over the Budget estimate has been contributed by taxation to the extent of £805,200, of which the principal increases arose out of—Customs duties, £431,400; income tax, £156,800; stamp and death duties, £99,200; and motor vehicles taxation, £70,600.

For the increase of £91,700 under “ interest” the Improved position of the net railway revenue for the past year has .been responsible, a surplus of £110,500 having been received from this source against which there have been minor clines in other sources of revenue under this heading. '

Under “other receipts” the surplus of some £41,600 arises for the most part by reason of registration and other similar fees having been maintained In excess of what might reasonably have been expected under current economic conditions. EXPENDITURE The expenditure for the year is illustrated as follows! >. PERMANENT APPROPRIATIONS. ’ " Appropn.. Expend., Tinder : ' . 1932-33. 1932-33. Appropn. £ e e Debt services 10,020.287 9,890,015 130,223 Other services 1,932,696 2,303,193 *870,497 * Over appropriation. ANNUAL APPROPRIATIONS. , Expend., Under ■ 1932-33. 1932-33. Appropn. Legislative and £ £ £ Prime Minister’s Department and Finance .. 397,332 374,590 22,742 General administration 1,014,226 960,609 53,617 Law and order 698,140 633,225 14,915 Defence .. 631,110 569,921 .61,189 Maintenance of buildings; etc., \ ..... 74,192 52,371 21,821 Development of primary and ’ secondary In- ' . dustrles .. 963,501 851,517 11,984 Social services, etc. .. .. 6.909,518 - 6,842,938 66,580 , Totals 22.640,952 22,528,379 112,573 It will be evident that substantial economies have been effected under all the main headings of expenditure with' the exception of “ other services ” under Permanent Appropriations, where an excess of £370,500 arises by reason of additional exchange on London purchased under the Banks Indemnity (Exchange) Act during, the final quarter of the financial year. Under other items the major saving arises under debt services, principally by reason of interest economies arising out of the fact that it was found possible to, finance the year’s operations with considerably less recourse to Treasury Bill finance than was anticipated. It will also be seen that by reason of the operation of progressive economies and a continuous review of all departmental expenditure substantial savings have been effected in every possible direction.

Treasury bills issued under-the Public Revenues Act for general purposes totalled for the year £22,974,000 as against which £24,410,400 were redeemed, the' redemptions showing an excess of £1,445,000 over the issue. This excess was due to the fact that bills totalling some ,£3,000,000 were outstanding at the close of the previous financial year.

BANKS’ EXCHANGE INDEMNITY More than usual interest will also centre upon the transactions arising out of the issue of Treasury bills under the Banks Indemnity (Exchange) Act of 1932 in respect of which £2.858,000 was issued ' during the year, Against which redemptions totalled £478,000, leaving > £2,380,000 outstanding at the close of the year. Of this amount, £1,910,000 has been utilised to purchase exchange from the banks under the provisions of the Banks Indemnity (Exchange) Act. The difference of £470,000 between the bills outstanding and the amount purchased represents the exchange cost, which has been debited against revenue under “ Permanent Appropriations,” “ Other Ex-

penditure.” :. Of the, sum of £1,910,000 as above paid to the banks for the purchase of exchange the major portion was retained In the New Zealand Government Indemnity Exchange Account in London, but as indicated in the account £380,000 was transferred to the Public Account before March 31 and formed part of the floating cash and investment balances of the Consolidated Fund.