SMALL SURPLUS

Southland Times, Issue 22040, 13 June 1933, Page 5

SMALL SURPLUS

DOMINION’S FINANCES ACCOUNTS FOR PAST YEAR REVIEW BY MR COATES (Per United Press Association.) Wellington, June 12. A supplement to a Gazette published to-day contained the audited accounts for the past financial year. In commenting upon the figures therein, the Minister of Finance, the Hon. J. G. Coates, states that as indicated in his preliminary Press statement issued shortly after the close of the financial year, the year closed with a balanced budget and a small surplus, this now having been defined as approximately £40,000, and in view of the serious position which had to be faced when the year opened will, it is felt, afford general satisfaction. The Budget provided for reducing the huge prospective deficit to not more than £1,010,100, but as the year progressed it became evident that the result for the year would be much nearer the 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. It will be seen that the revenue for the past year, compared with the Budget Estimates, discloses an excess of receipts over the Budget Estimates as follows:

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 an increase of £91,700. Under “interest” the improved position of the net railway revenue for the past year has been responsible for a surplus of £110,500 having been received from this source, against which there have been minor declines in other sources of revenue under this heading. , . . r Under other receipts, a surplus ot 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 the current economic conditions. The expenditure for the year is illustrated as follows: Permanent Appropriations. Appropria- Expenditure. Under tion. Appropria-(1932-33) (1932-33) tion. ££ . £ Debt services 10,020,237 9,890,015 1,302,222 Other services 1,932,696 2,303,193 *370,497 * over appropriation. Annual Appropriations.

Totals 22,640,952 22,528,379 112,573

Over Appropriation.

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. Under other items it will 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 £24,419,400 were redeemed, redemptions showing an excess of £1,445,000 over issue, the excess being due to the fact that bills totalling some £3,000,000 were outstanding at the close of the previous financial year. More than usual interest will also centre upon 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" 0 9,000 outstanding at the close of the year. Of this £1,910,000 has been utilized to purchase exchange from the banks under the provisions of the Banks Indemnity (Exchange) Act. The difference of £470,000 between bills, outstanding and the amount purchased represents the exchange cost which has been debited against the revenue under “permanent appropriations,” and “other expenditure.” Of the sum of £1,910,000 as above paid to the banks for purchase of the 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 31st March and formed part of the floating cash and investment balances of the Consolidated Fund.

Budget. Receipts. Excess of Estimate receipts (1932-33) (1932-33). over .Budget Estimate. £ £ £ Taxation 14,800,000 15,605,206 805,206 Interest Other re2,550,000 2,641,710 91,710 ceipts 4,280,000 4,321,605 41,605

Legislative & Prime Minister’s dept. 397,332 374,590 22,742 General ministration 1,014,226 960,609 54,617 Law and order 698,140 683,225 14.915 Defence 631,110 569,921 61,189 Maintenance of buildings, etc. 74,192 52,371 21,821 Development of primary & secondary industries 963,501 951,517 11,984 Social services, etc. 6,909,518 6,842,938 66,580