REVENUE MAINTAINED

Poverty Bay Herald, Volume LXV, Issue 19697, 1 August 1938, Page 7

REVENUE MAINTAINED

THE NATIONAL FINANCES

FIRST QUARTER'S RETURNS

COMMENT BY MINISTER

(Parliamentary Reporter,) WELLINGTON, this day

In announcing accounts for the first quarter of the current financial year, the Hon. W. Nash said that the results were satisfactory and showed that the Budget estimates were being ciosely adhered to. The accounts were now under audit examination.

The Minister explained that the following was the revenue to June JO, the figures for the same period of the previous year being shown for comparison:—

“It will be noted from the foregoing figures,” Mr. Nash explained,” that the taxation revenue for the first quarter of this financial year totals £5,798,000 compared with £5,09(3,000 for the first quarter of last year, an increase of £102,000. “A more satisfactory basis of comparison, however, is the percentage of revenue received to date compared with the estimated revenue in respect of the current financial year and with the actual revenue as regards last year. On this basis, the percentage is 18 in botli cases, while individual items show comparatively little variation, thus indicating that taxation is coming to hand in a satisfactory manner. It will also be noted that other headings of revenue indicate a slight percentage reduction but tins is purely an accounting fluctuation of no sognilicance at the moment. The main headings of expenditure for the quarter were as follows: — Permanent Appropriations.

“The total expenditure to June 30, 1938, exceeds that of the first quarter of the last financial year by £695,000, of which permanent appropriations account for £175,000, and annual appropriations for £520,000,“ said Mr. Nash. ‘Highways, however, which accounts for £368,000 of the increase, is a self-balancing item and, as shown in the Budget, is offset, by an equivalent amount of revenue. Consequently this item is no burden on the Consolidated Fund.

"Debt services show an increase of £IIO.OOO, and it will be noted from the Budget estimate that an increase of only £IOO,OOO has been provided for the whole year. The greater portion of the excess expenditure in this case is due partly to a variation m interest payment dates and partly to ordinary accounting fluctuations. "In regard to the annual appropriations, social services indicate an excess expenditure of £343,000, and Other votes an excess of £177,000. The increase in respect to social services arises principally from the vote for education, £217,000, and the vote for pensions, £135,000, offset by sundry savings. As stated in the Budget, additional provision has been made this financial year under the vote for education to cover the cost of providing additional teachers consequent upon both the increase in the number of pupiis attending State schools and the reduction in the size of classes, and also additional grants to the university colleges, etc.

"As regards pensions, too, additional provision has been made in this year's estimates, arising principally in respect of invalidity and old-age pensions. Invalidity pensions were introduced for the first time in 1930, while in the case of old age pensions the residential qualification was reduced last year, and in both cases new applications are still coming to hand and require to be met.

"Eliminating accounting fluctuations, both- the revenue and expenditure are adhering closely to the Budget estimates, and the financial position generally is most satisfactory."

Customs . 2.423,000 2,500,000 Beer duty 251,000 212,000 Sales tax . 845,000 887,000 Highways 873,000 888,000 Stamp and death duties 731,000 811,000 Land and income lax 633,000 355,000 Other t: ixation 42,000 43,000 Total tr ixalion 5,798,000 5,696,000 Interest 265,000 431,000 Other reeeipts .. 499,000 589,000 Grand total 6,562,000 6,716,000

£ £ Debt service 1,664,000 1,554,000 Highways 804.000 436,000 Exchange 202,000 359,000 Other services .. 43,000 189,000 Annual appropriations. Social services .. 3,015,000 2,672,000 Other votes 1,698,000 1,521,000 Total expenditure 7,426,000 6,731,000