RISE IN REVENUE

Taranaki Daily News, 6 November 1934, Page 9

RISE IN REVENUE

FINANCE OF DOMINION GREATER BUOYANCY FELT FIRST HALF OF THE YEAR EXPENDITURE KEPT DOWN STATEMENT BY MINISTER

By Telegraph—Press Association. Wellington, Last Night. The Government’s expectations of a substantial increase in revenue compared with that of last financial year have been fulfilled up to the present, according to an important statement made by the Rt. Hon. J. G. Coates, Minister of Finance, in the House of Representatives tonight. Dealing with the Dominion in moving the second reading of the Appropriation Bill, Mr. Coates said the figures for the first six months of the year showed an increase in revenue of £1,646,027 compared with the same .period in the previous year- Expenditure was also being held within the aggregate allowed in the estimates. “As the Bill is the final stage of the budgetary programme,” said Mr. Coates, “members will no doubt be interested to know what progress has been recorded in terms of Consolidated Fund finances for the first, six months of the current financial year. The Budget was based on expectation of a substantial increase in revenue compared with that received for last financial year. The results for the half-year ended September 30 last are in accord with these expectations. “Accounts for the period, which will be gazetted shortly, will show that the revenue for the period amounted to £9,900,125, compared with £8,254,098 last year, an increase of £1,646,027. Of this ipcrease £1,390,000 represents buoyancy in taxation receipts, the principal items concerned being Customs (£500,000), sales tax (£160,000), highways (£100,000), stamp and death duties (£310,000). The remaining £256,000 of the increase came from interest and other receipts. INCREASE IN REVENUE.

“Practically every item contributing to the revenue is normally higher in the second half of the year, and last financial year only 35 per cent, of the total revenue for the year was received during the first half of the year. For the current period receipts for the half-year represent 40 per cent, of the Budget estimates, thus indicating that so far receipts are well up to Budget expectations. ' “On the other side of the picture expenditure for the six months amounted to £12,860,571. In round figures the main classes of expenditure involved were as follows: Debt services, £5,826,000; 'exchange, £1,417,000; permanent appropriations, £947,000; social services, £3,114,000; other votes, £1,650,000; total, £12,860,000. This totgl is approximately £1,000,000 ahead of the proportionate part of the Budget estimate, but I may explain. that the substantially full amount allowed for debt repayment for the year has already been paid out, and this item accounts for £750,000 of the apparent excess of expenditure. ** “Similarly expenditure on exchange included cover requirements for the whole year. In fact, there are some credits still to come, so that the net expenditure for the year will be slightly Wq than is shown for the half-year. This item, accounts for a further £750,000 of excess over the proportionate part of the estimates. This means that the other items were proportionately underspent to the extent of £500,000, but I do not hope to maintain that position until the end of the financial year, as it is largely due to seasonal or accounting fluctuations.

• ’ “An analysis of the figures will show, however, that expenditure generally is being held within the aggregate allowed in the estimates. This satisfactory state of affairs, combined with the fact that revenue is well up to expectations, supports the Budget forecast that the year will close with a small surplus. Many factors are involved, and not the least is the psychological reaction and interaction from the steps already taken and the proposals made for economic rehabilitation generally. "Trade and industry are, of course, the basis upon which the Budget rests, and as Finance Minister I am always on the look-out for indications of continued improvement. Up to the present the trend of affairs shows that the Budgeting was not over-optimistic.” 1 ....