KEEPING CLOSE TO ESTIMATES

Southland Times, Issue 23897, 16 August 1939, Page 6

KEEPING CLOSE TO ESTIMATES

Public Accounts For First Quarter INCREASED REVENUE EXPENDITURE ALSO SHOWS ADVANCE (United Press Association) WELLINGTON, August 15. On behalf of the Minister of Finance, the Hon. P. Fraser announced the financial position as reflected in the public accounts for the first quarter of the present financial year. The usual detailed statement will appear as a supplement to this week’s Gazette. A comparative statement of revenue for 1939 with figures for 1938, is as follows, with increases for 1939 as a third group of figures:— REVENUE (April I—June 30) £ thousands 1939 1938 Inc.

INCREASE SPREAD “It will be seen from these results, ’ Mr Fraser explained, “that on a cash basis, the total revenue received for the quarter ended June 30, 1939, amounted to £7,387,000 compared with £6,562,000 for the same period last financial’year. This increase, to which all major headings of revenue contributed, represents a gain as there were no increases in the rates of taxation during the period. The increase in Customs revenue reflects the heavy importation •of goods before the close of the first six-monthly licensing period this year. The increase is therefore not an indication of the results for the whole year. In fact, as shown in the Budget, apart from increased petrol tax, Customs revenue was anticipated to shown a reduction of £1,650,000 for the year. The other items call for no special comment except perhaps to explain that as in the case of Customs, the increases in death duties and in-come-tax rates were not operative during the period under review. In highways taxation the item is self-balanc-ing, revenue being offset by an equivalent amount of expenditure. “The expenditure position is as follows:—

EXPENDITURE. (April 1-June 30.) £ thousands. 1939 1938- Inc.

“For purposes of comparison expenditure totalling £750,000, actually charged in the accounts under permanent appropriations, has been included under the heading of annual votes for social services. This amount represents expenditure on the Social Security purposes which, in accordance with the relative legislation, has been charged to permanent appropriations pending the passing of an Annual Appropriation Act. The total expenditure is in no way affected by this qualification. .HIGHER PERCENTAGE ‘“lt will be noted that expenditure for the quarter totalled £7,540,000 compared with £6,661,000 for the same period last financial year. On a percentage basis, where allowance is made for the fact that the estimated expenditure for the whole of the current financial year exceeds last year’s expenditure, 20 per cent, of this year’s estimate has been expended to date compared with 19 per cent, for the same period last year. “The only items calling for special comment are ‘exchange’ and ‘social services.’ The exchange increase is due to the fact that additional remittances were made to London in the first quarter of this financial year compared with the same period last year. It is expected that the provision of £1,500,000 made in the current year’s estimates will be sufficient to cover expenditure under this item. “A 7 per cent, increase is shown under ‘social services’ but the expenditure is not strictly comparable as many items such as pensions and annuities, which last financial year were provided for under the vote for pensions, are now charged against the Social Security Fund.

“While the position as disclosed by these results is in every way satisfactory,” Mr Fraser concluded, “it is, of course, too early to indicate what the results for the full year will be. To date, however, we are adhering closely to Budget estimates.”

Taxation— Customs 2,562 2,422 140 Beer duty 256 251 5 Sales tax 958 845 113 Highways 1,075 873 202 Stamp and death duties 830 731 99 Income tax 696 561 135 ■Miscellaneous 74 115 —41 Total taxation 7,451 5,798 653 Interest 401 265 136 Other receipts 535 - 499 36 Total revenue 7,387 6,562 825

Permanent votes— Debt services 1,712 1,664 48 Exchange 417 202 215 Highways 813 804 9 Other 54 43 11 Totals 2,996 2,713 283 Annual votes — Social services 2,717 2,437 280 Other votes 1,827 1,511 316 Totals 4,544 3,948 596 Grand totals 7,540 6,661 879