PUBLIC ACCOUNTS

Otago Daily Times, Issue 23333, 27 October 1937, Page 10

PUBLIC ACCOUNTS

A PRELIMINARY SURVEY REVENUE IN EXCESS OF ESTIMATES EXPENDITURE WITHIN BOUNDS (From Our Parliamentary Reporter) WELLINGTON, Oct. 26. A summary of the public accounts for the half-year ended September 30 was announced by the Minister of Finance (Mr Nash) at the conclusion of his reply to the Budgei debate in the House of Representatives to-night The Minister drew attention to the fact that the revenue was ahead of the estimates, while the expenditure was being kept well within the bounds laid down in the Budget. Mr Nash said the accounts for the half-year had been completed, and that as soon as they had been audited the usual details would be published in the Gazette. In the meantime a summary oi the position indicated a very satisfactory state of affairs. The Consolidated Fund revenue for the half-year amounted to a total of £13,564,000, representing an increase of £2,107,000 compared with the first six months of the last financial year. REVENUE Receipts under the principal neadings compare as follows for the six months of this financial year and last financial year:— 193? 1936 Increase Taxation £ £ £ Customs .. 5,460,000 4,583,000 877,000 Beer duty .. 431,000 366,000 65,000 Sales tax .. 1,769.000 1,447,000 322,000 Highways .. 1,504,000 1,297,000 207.000 Stamp and death duties 1,605,000 J.,553,000 52.00 U Other taxation 982,000 741,000 i 41,000 Totals .. 11,751,000 9,987,000 1,764,000 Interest .. 777,000 802,000 *25,000 Other receipts 1,036,000 668,000 368,000 Totals .. 13,564,000 11,457.000 2,107,000 * Decrease "Although there has been no increase in the rates of taxation," the Minister explained, "the Budget for the current financial year was based on an increase in revenue as a result of the general prosperous conditions which obtain. The extent to which the Budget estimates are being realised will be appreciated from a consideration of the percentages. Both the revenue from taxation and the total revenue are ahead of the relative position last financial year. Customs revenue particularly shows a substantial increase, while the reduction in highways revenue will be compensated for in the expenditure, as the highways revenue and expenditure is a self-balancing item. "The heading 'Other Taxation consists mainly of land and income tax, but as the final dates for payment of these imposts fall in the second half of the financial year, the receipts to date are, of course, no indication of the amounts which will' eventually come to hand." EXPENDITURE In regard to the expenditure, Mr Nash stated that the total for, the half year was £14,244,000, being £2,970,000 less than the proportionate amount of the estimates. The details were as follows: Permanent Appropriations— Propor- Under tton of Expen- ProEstimates, diture. portion. £ £ £ Debt services .. 4,698,000 3,796,000 902,000 Highways 1,529,000 1,373,000 156,000 Exchange 850,000 837,000 13.000 Other services .. 300,000 255,000 45,000 Totals 7,377.000 631.000 1,116,000 Annual AppropriationsSocial services .. 6,084.000 5,057,000 1,027,000 Other votes 3,753,000 2,926,000 827,000 Total .. 9,837,000 7,983,000 1,854,000 Grand total 17,214,000 14.244.000 2,970,000 •'From the foregoing particulars," said the Minister," the permanent appropriations appear to be under-ex-pended to the extent of, £1,116,000, of which debt services account for no less than £902,000. The Budget provided for an increase of £15,000 in debt services, and the substantial underexpenditure to date is accounted for principally by the fact that the resources of the repayment of the public debt account have been utilised to the extent of only £83,000 this financial vear, whereas the porportional part of the estimates is no less than £852,000. Opportunities for utilising the balance of the debt repavment moneys will not be available until the second half of the financial year Highways, as already explained, is a selfbalancing item, and will not affect the net results of the Consolidated Fund for the year. SOCIAL SERVICES "In regard to the annual appropriations," the Minister said, "it will be noted that in the total the expenditure to date is £1,854,000 less than the relative proportion of the estimates social services alone accounting for a total of £1,027,000. The apparent under-expenditure in respect of social services is very largely an acounting fluctuation due to the fact that advances in the hands of imprestees at the end of the first six months will not be brought to charge until the latter half of the year. Moreover subsidies in respect of hospitals, etc., are normally heavier in ths latter part of a financial year than at the beginning. It is anticipated, however, that the greater proportion of the present excess will be absorbed bv the end of the year. "Generally speaking," Mr Nash concluded, "the present position gives reason for every satisfaction. . The revenue is keeping a little, ahead of the estimates, while uV expenditure is being maintained well within the amounts budgeted for."