SOUND POSITION

Southland Times, Issue 22734, 9 November 1935, Page 6

SOUND POSITION

PUBLIC ACCOUNTS HALF-YEARS RETURNS INCREASE IN RECEIPTS LESS EXPENDITURE (Per United Press Association.) I’aparoa, November 8. A highly satisfactory position is disclosed in the Public Accounts for the half-year ended September 30 as announced to-day by the Minister of Finance, the Rt. Hon. J. G. Coates. The receipts for the six months are placed at £10,198,828, an increase of £298,703 over the figure for the first half of last year, while the expenditure totals £11,738,000, a decrease of £1,122,000 over the sum paid out in the corresponding period of 1934-35. “The figures disclosed in the audited accounts support very strongly the Estimates made in the Budget,” Mr Coates said. “The year’s financial statement was based on an expected increase in taxation revenue and by decreases allowed for under the headings of Interest and Other Receipts. The results for the half-year generally bear out the Budget forecast, the detailed figures being as follows:— 1934-35 t 1935-36 £ ( £ Taxation 8,200,23? 8,400,104 Interest 969,809 927,735 Other Receipts 730,077 870,989 Totals 9,900,125 10,198,828 Increased Receipts. “Of the total increase of £298,703 the juoyancy of taxation receipts is represented by an advance of £199,865. There are increases of £283,177 in Customs receipts and £150,014 in the sales tax. Stamp and death duties show a fall of £276,174 but this was expected as abnormal receipts under this heading last year exceeded the Estimates by nearly £BOO,OOO. The revenue from land and income tax will not be known until later in the year, but it is confidently anticipated that the income tax returns will exceed the Budget estimate of £425,000. “Normally the greater proportion of the revenue is received in the second half of the year, and probably the best way to test the present position from the budgetary point of view is to work on a percentage basis. Taxation receipts for the first half of the last financial year are represented by 40.64 per cent, of the total for the year, while this year the proportion is 40.54 per cent, of the full Budget estimate. This year’s position is better than it appears, as an alteration in the method of collecting the petrol tax causes a delay of one month. Under the arrangement with the companies the delay will be made up before the close of the year. However, as no portion of the highways revenue is to be retained by the Consolidated Fund, the budgetary position is not affected. Apart from highways the percentages for taxation revenue are: Last year, 39.40; this year, 39.70. Percentages Compared. “The main sources of the Consolidated Fund revenue all show an increased percentage of collection as compared with the .same period of 1934-35. The comparative percentages are as follows:—

“Summed up, the revenue figures show a buoyancy in taxation, the returns noted last year being more than maintained, while interest and other receipts are well up to expectations. The comparative figures for the main classes of expenditure for the half-year are as follows:—

Lower Interest Charges. “The large decrease under debt services is mostly nominal. » Transfers under the Repayment of Public Debt Act were made earlier last year. However, it is estimated that there will be a decrease of about £300,000 for the year due to a reduction of interest charges. The decrease under exchange is also purely nominal, while the increases shown under other headings are in accordance with the proposals for the year. “The position as a whole is very gratifying. The figures show that as a result of the measures we have taken in the past the Dominion has returned to a position of budgetary stability. There is clear-cut evidence, too, that there has been a marked improvement generally in economic conditions over the past few years.”

Last year This vear Customs 46.93 47.68 Sales Tax 47.03 47.31 Stamp and death duties 44.81 48.02 Interest 33.09 35.49 Other receipts 24.19 36.17

Permanent appropriations— 1934-35 1935-36 £ 4,569,000 Debt services £ 5,826,000 Exchange 1,417,000 958,000 □ther appropriations 947,000 1,182,000 Annual appropriations— Social services 3,114,000 3,323,000 Other votes 1,556,000 1,706,000 Totals 12,860,000 11,738,000