THE DOMINION’S FINANCES.

Taranaki Daily News, 6 August 1932, Page 6

THE DOMINION’S FINANCES.

The Prime Minister’s statement regarding the condition of New Zealand’s national accounts for the first quarter of the financial year presents some pleasing features. It would, of course, be useless to attempt to calculate the results of the full year’s operations on the basis of the figures available, for neither revenue nor expenditure can be averaged over the four quarters. On the expenditure side many of the charges taken into account are constant, but others vary very considerably, and receipts, as the payers of direct taxation are fully aware, bulk far larger in the last than in the first quarter. It is possible, however, to institute a few comparisons that will be found distinctly encouraging. The fact that the revenue has been only £250,000 loss than it was in the first quarter of last year is entirely satisfactory. In his preliminary statement presented to Parliament on April 7 last the Minister of Finance put the expected decline in revenue for the full year at £3,490,000, taking into account the fact that such reserves as were utilised to assist the Budget last year would not be available. If this year’s Budget when it makes its appearance at the ordinary session is based on the April prediction the Minister will find ground for hopefulness in the present position. It is particularly interesting to learn that receipts from taxation have shown an increase of £7660 over the amount received in the first three months of last year. There has beep a substantial decline in some classes of taxation—Mr. Forbes mentions motor vehicle duties and license fees and' stamp and death duties—but the State has had the good fortune to collect £200,000 more from Customs and excise duties than it did during the corresponding period of last year. This certainly is the most cheering feature of the accounts. A substantial increase ia this department indicates greater activity in trade, and if importers have been renewing their stocks they must be expecting to do better business. The Minister of Finance in April expected a reduction of £900,000 in the year’s receipts from Customs and excise duties, and it is very gratifying to know that the year has begun far better than he apparently had

reason to suppose it would. It is quite likely that by the time he meets Parliament again the business outlook will justify a far more optimistic view of the possibilities of indirect taxation. The figures on the expenditure side unfortunately are not very impressive, the improvement of £935,000 by comparison with the first quarter of last year being almost entirely attributable to the suspension of interest and sinking fund payments in respect of the funded war debt. Economy measures apparently are represented by a saving of no more than £150,000 during the quarter. Substantial economies were made, of course, last year, but in view of the expected decline in receipts it is evident that the greatest care is still needed to bring the expenditure within the limits of the country’s income.