N.Z'S BALANCE SHEET

Sun (Auckland), Volume III, Issue 886, 1 February 1930, Page 9

N.Z'S BALANCE SHEET

MORE REVENUE, HIGHER EXPENDITURE SMALL SURPLUS FORECAST WELLINGTON, Friday. Details of the public accounts for the nine months which ended December 31 are given in a statement by the Prime Minister, Sir Joseph Ward. Revenue for the nine months was £16,338,212, compared with £15,013,863 for the corresponding period of the previous year, au increase of £1,324,349. After making due allowance for fluctuations iu dates of accounting and increases in motor vehicles licence fees and tax on motor spirits, collected for the Main Highways Board, the actual increase is approximately £1,150,000. Customs revenue shows an increase of £866,932. About 40 per cent, of this increase is accounted for by duty on motor vehicles, which is largely seasonal and is not likely to continue to the close of the financial year. The additional primage duty is responsible for £198,000. Land-tax receipts are higher by £71,019, this being due principally to the alteration in mortgage exemptions and revaluations. An increase in interest on public moneys of £122,214 is mainly due to the earlier raising of the 1929 loan in London, enabling loan receipts to be invested on fixed deposit for a longer period, and the higher rate of interest received on temporary investments in London. The increase of £SS,IOS in miscellaneous revenue includes £54,000 on account of the sale of the Pacific Cable. The following table shows the revenue received under the principal heads, compared with three-quarters of the Budget Estimates for the year. Receipts for motor-vehicle duties, licences, etc., which are apportioned to the main highways account and local bodies, and from income-tax which is not payable until February, have been omitted from the table.

of estimates for full The Prime Minister remarks that customs duty is the only item showing a substantial increase over the proportion of the estimate, but when the estimate was made it was expected there would be a falling off toward the end of the year. This has been not yet borne out, for although the amount received during November was less than the amount received during any month since June, 1929, December is well above the average. Interest on capital liability of working railways shows a considerable shortage, and owing to the writing off of £8,100,000 capital in terms of section 20 of the Finance Act, 1929, the final revenue for the year from this source will be lower than the estimate. As a set-off against this decrease can be taken the cessation of the subsidy on branch lines and isolated sections. The expenditure for the nine months, compared with the corresponding period of the previous year, was:

Interest payments have increased by £139,221, principally Interest on new loans raised In London and New Zealand. Under the repayment of the Public Debt Act, 1925, there is an increase of £1,029,283, which :is mainly due to earlier payment this year, but includes a part of the estimated increase of £IOO,OOO. Under special Acts there is an increase of £424,548, the greater proportion being due to the increased receipts from motor vehicles duties, licences, etc., and the consequent increase in the amounts paid to the main highways account. In addition, old age and widows’ pensions and subsidies under the Hospitals and Charitable Institutions Act, 1926, show increases. Expenditure under annual appropriations shows very little variation. Increases are shown in the votes for Department of Agricultui-e, £13,378, and for the Department of Education, £93,778, while there are decreases under Public Buildings. £24,964; Department of External Affairs, £20,635; Electoral Department, £50,736. From the above it will be seen, the Prime Minister adds, that the major portion of the increase is in permanent appropriations. After eliminating increases due to accounting fluctuations (earlier payments) and items such as the payments of fees and fines under the Motor Vehicles Act, and of petrol-tax to the main highways account, which follow a corresponding increase on the revenue side, the approximate increase in permanent appropriations is £360,000.

Summing up the position as disclosed by the nine months’ figures indicates that there is reasonable prospect of the accounts balancing on the right side at the end of the financial 3 r ear, with the possibility of a small surplus if the Customs revenue does not materially decline. The expenditure for the nine months exceeds the revenue by £2,520,459. The excess for the corresponding period of 1925-29 was £2.214,721 and that for 1927-2 S was £2,095,342.

Customs .. .. •Estimate. £ 6,300,000 £ Beer duty .. ■150,000 Stamp and duties . . death 2,710,500 Band tax . . 1,119,750 Interest on public moneys 615,000 645,554 Interest on liability of ing rail wavs work - 1,837,500 .t'ostal and telegraph 360,000 Interest on public debt redemption fund 746,250 641,605 Totals ,. .. 14,139,000 14,064,217

1920. Per manent a p p ropriations .. 13,205,561 11,5SS,970 1,616,SSI Annual app r o priations .. 5,652,810 5,639,614 13,106 Totals .. IS, 853,671 17,228,584 1,630,087