SHORTAGE LESS

Taranaki Daily News, 14 February 1933, Page 7

SHORTAGE LESS

NEW ZEALAND’S FINANCES buoyancy of TAX REVENUE ' REVIEW FOR NINE MONTHS J — CLOSE WATCH ON SPENDING ESTIMATES IN COMPARISON By Telegraph.—Press Association. Wellington, Last Night. Commenting upon the public accounts for the nine months ended December 31, the Minister of Finance (the Rt. Hon. J. G. Coates) said revenue for the period comparatively summarised under the main headings had been received as follows: — 1931-32 1932-33 Variation £ £ & Taxation .. 9,133,777 9,450,638 316,861* Interest ... 1,855,383 1,557,741 297,642 t Other ■ receipts . 1,454,006 917,430 536,576 f Total? .. 12,443466 11,925,809 517,357 t ‘ ’lncrease. tDecrease. “This discloses that the buoyancy of revenue from taxation has continued to be well maintained,” Mr. Coates said, “the principal contributing factor being Customs receipts, which, compared with the proportionate part of the Budget • estimate, show an excess of Thus it appears reasonably certain that notwithstanding the Ottawa concessions the estimate for the current year under this heading will be exceeded. “ “Beer duty also discloses a small but favourable margin, which it appears safe to assume will be maintained. ■" MOTOR TAXATION AHEAD. “Motor taxation is ahead of the estimate to the extent of £104,400 and although license fees payable in the earlier part of the year are to some extent responsible* it would appear the receipts Will exceed the Budget estimate. Any such additional revenue received, however, passes automatically to the main highways account as-provision was made for the retention by the Consolidated Fund of £500,000 only. “Stamp and death duties show a proportionate increase of £25,000, but this ran be regarded as a normal monthly fluctuation, present indications being that receipts from this source will be closely in accord with the Budget estimate. “Tand tax receipts, which are receivable at the end of November, disclose a shortage against the total estimate for the year of £62,000, but this will be reduced somewhat by additional amounts received during the last quarter. “Income tax is not payable until later in the year and the amounts received are not yet comparable with the estimates. Present indications, however, are that revenue from this source will not fall far short of the estimate, if not wholly realised. ADJUSTING INTEREST RECEIPTS. “Interest receipts for the period are £355,000 behind the proportionate part of the Budget estimate, but indications are that for the most part the proportionate shortage against the estimate will adjust itself before the end of the financial year. Certain payments by the discharged soldiers’ settlement account are a somewhat uncertain factor and interest on public moneys may fall a little short of the estimate for the year. “Other receipts disclose a total of £2,292,500 under the proportion of the estimate for the year, but this is principally due to receipts from reserves, £1,875,000, and from post and telegraph profits, £202,500, not being receivable until later in the year. Otherwise these variations are due mainly to seasonal and accounting fluctuations, it being anticipated that the group as a whole will be fairly closely in accord with the Budget estimate. From a Budgetary point of view, therefore, revenue can be regarded as satisfactory in that'the deficiencies under land tax, interest and other receipts will be covered by an anticipated surplus in Customs revenue.” NINE MONTHS’ SPENDING. Expenditure for the nine months was as follows, the first column (1931) being the expenditure for the nine months ended December 31, 1931, the second column (proprtn.) being the proportion of the current year’s estimate, the third column (1932) the expenditure for the nine months ended December 31, 1932, and the third column (decrease) the amount below the proportionate estimate for the current year:— 1-931 Proprtn. 1932 Decrease £ £ ■ -£ £ Permanent Appropriations. Debt Serviced— 7,515,178 5,718,745 7.96,433 Other services—--4,690,897 1,449,522 1,113,008 836,514 Annual Appropriations . legislative*— 808,0107 297,999 276,901 21,098 General administration — \ 484,569 760,67'0 483,604 277,066 Law and Order—--451,017 523,605 469,244 54,361 Defence—• . 266,443 473,332 289,663 183,6619 Maintenance of Public Buildings—--44,338 55,644 21,707 33,937 Development of industries—--575,447 722,626 641,316 81,310 Social services, etc.— 5,182,138 4,801,771 360,367 17,152,155 16,980,711 14,835,959 2,144,75'5 (♦Legislative and Prime Minister’s Departments and Finance.) “It will be observed that debt charges are below the estimate by £796,433, which for the most part is due to payments under the Repayment of Public Debt Act, 1925, not yet having been made,” Mr. Coates said. “This will adjust itself as the year progresses. It is anticipated, however, that interest charges will not quite reach the' estimate as there will be some saving in respect of interest on Treasury bilk. SUMS STILL TO BE PAID. •‘Similarly other permanent appropriations disclose a nominal decrease of • £336,514 in comparison with the Budget estimate due for the most part to the fact that considerable sums are not paid until toward the end of the financial year. It is expected some further savings can be made under this heading. “The variations under annual appropriations are for the most part due to accounting fluctuations, although in some votes further savings are already in eight. Broadly speaking expenditure is less than the proportionate part of the ' Budget programme for the year and > continues to demonstrate that expenditure under all main divisions is well within the current year's estimates. “Thus the accounting position continues in the meantime to reflect a satisfac-

tory revenue tendency, whereas expenditure has been kept under close control and continues to reflect the progressive economies that have been instituted. The outlook as awhole under present indications is that in the aggre-

gate the revenue will slightly exceed the Budget estimate, whereas expenditure will disclose appreciable savings Accordingly on the basis of the Budget for the year it is now anticipated the Budget deficiency will be about £700,000, compared with £1,000,000 forecast. A certain amount of revenue, however, will be collected this financial year under the taxation proposals recently brought down primarily to cope with the prospective budgetary situation for next financial year, and this year's deficit will be correspondingly lessened,” _ L _