YEAR’S FINANCE

Taranaki Daily News, 2 June 1934, Page 9

YEAR’S FINANCE

REDUCTION IN DEFICIENCY ONE-THIRD OF THE ESTIMATE APPROXIMATELY £709,000 EXCHANGE COST £18,000,000 STATEMENTS BY MINISTER By Telegraph—Press Association. Auckland, Last Night. Audited accounts for the past financial year were released by the Minister of Finance (Rt Hon. J. G. Coates) tonight. Commenting upon the results as disclosed the Minister stated that as announced in his preliminary statement issued shortly after the close of the financial year the net result of the year s transactions was that the Budget deficiency had been reduced to about onethird of what was anticipated when the Budget was brought down. “The deficiency has now been defined as approximately £709,000, a result which, when all factors are taken into consideration, must be regarded as very satisfactory and further indication. that the economic position of the Dominion is improving,” said the Minister. “The shortage as contemplated in the Budget was £2,094,000, but arising out of the fact that the revenue exceeded expectations to the extent of £1,200,000 and sustained economy in all avenues of expenditure resulted in savings totalling approximately £255,000, the deficiency has been reduced to £709,000.” Revenue receipts shown in detail in the gazetted accounts are summarised as follows: — Excess Budget Est. Receipts Rec. Over 1933-34 1933-34 Est. Taxation £16,214,000 £17,059,829 £845,829 Interest £2,551,000 £2,863,856 £312,856 Other Rec. £3,540,810 £3,569,063 £28,253 Totals £22,305,810 £23,492,748 £1,186,938 “In the taxation group,” the Minister said, “practically all items contributed to the improvement over the estimate of £845,000, the main items being: Customs and beer duty, £290,000; sales tax, £97,000; stamp and death duties, £113,000; income tax, £261,000: The improved position of the net railway revenue for the past year is almost wholly responsible for the increase of £312,000 in interest receipts, the excess in this item alone being £294,000. “Other receipts showed an improvement in thg total on the estimate of £28,000. Most of the items assisted towards this result, the principal increases being:—Registration and other fees, £9000; endowment revenue, £19,000; territorial revenue, £65,000; miscellaneous, £46,000. The Post and Telegraph Department’s profit fell £95,000 short of the estimate and the Justice Department’s receipts were short by £21,000.Expenditure for the year was as under:—

“It will be evident from the foregoing that the actual expenditure under all heads has been kept very close to the amount appropriated,” the Minister continued. “Expenditure in most of the cases is slightly less than the amount authorised. The result has been attained through general recognition of the pressing need for economy and continued efforts to effect savings wherever possible.

“In so far as exchange operations are concerned the amount of £1,797,000 included in expenditure charged against the Budget for the year represents the net cost to the Consolidated fund of purchasing £8,500,000 for normal requirements in London and Australia. The total amount of sterling purchased under the Banks Indemnity (Exchange) Act during the financial year amounted to £26,684,000, but this includes £8,500,000 for the normal requirements just referred to. The surplus sterling taken over thus amounted to £18,184,000. Adding £1,910,000 surplus sterling taken over during the previous financial year the total amount of surplus sterling held on March 31 last amounted to £20,094,000. As previously indicated this amount will be taken over by the Reserve Bank.”

PERMANENT APPROPRIATIONS. Appropriation 193-3-34 Expenditure 1933-34 Appropriation fi- £ £ Debt services 10,445,481 10,397,333 48,14'8 Highways 1,170,000 1,201,837 22,837 Exchange Other special Acts and 1,790,000 1,797,188 7,188 Services 339,767 353,7-96 ANNUAL APPROPRIATIONS. Legislative, Prime Minister’s Department . & 14,029 Finance' General ad393,129 371,674 21,455 ministration 816,867 790,209 26,658 Law & Order 699,094 673,274 25,820 Defence Mai ntenance Bui idings. 688,948 66-2,108 26,840 etc., D e velo-pment Primary & Se condary 90,600 72,403 18,197 Industries 1,078,153 1,036,742 41,411 Social Serv. 6,935,80'7 6,845,463 90,344 Totals 24,456,846 24,202,027 ♦ Over appropriation. *254,819