REVENUE BUOYANT

Taranaki Daily News, 9 November 1935, Page 6

REVENUE BUOYANT

NEW ZEALAND FINANCE ACCOUNTS FOR HALF-YEAR INCREASE IN THE INCOME EXPENDITURE DECREASE By Telegraph—Press Association. Paparoa, Last Night. A- highly satisfactory position is disclosed in the public accounts for the half-year ended on September 30, annoiinced to-day by the Minister of Finance, the Rt. Hon. J. G. Coates. Receipts for the six months are placed at £10,198,828, an increase of £298,703 over the figure for the first half of last year, while expenditure totals £11,738,000, a decrease of £1,122,000 from the sum paid, out in the corresponding period of 1934-35. “The figures disclosed by the audited accounts support very strongly the estimates made in ths Budget,” Mr. Coates said. “The year’s financial statement was based on an expected increase of taxation revenue, but decreases were allowed for under the headings of interest and other receipts. The results of the half- . year generally bear out the Budget forecast, the detailed figures being as follows:—

“Of the total increase of £298,703 buoyancy in taxation receipts is represented by an advance of £199,865," proceeded the Minister. “There are increases of £283,177 in Customs receipts and £150,014 in sales tax. Stamp 1 and death duties show a fall of £276,174, but this was expected as abnormal receipts under this heading last year exceeded the estimate by nearly '£Boo,ooo. Revenue from land and income tax will not be known until later in the year, but it is confidently anticipated that income tax returns will exceed the Budget estimate of £4,250,000. “Normally the greater proportion of the revenue is received in the second half of the year, and probably the "best way to test the present position from a budgetary point of view is to work on a percentage basis. Taxation receipts in the first half of the last financial year represented 40.64 per cent, of the total for the year, while this year the proportion is 40.54 per cent, of the full Budget estimate. This year’s position is better than it appears as an alteration in the method of collecting the petrol tax causes a lag of one mdnth. Under arrangement with the companies the delay will be made up before the close of the year. However, as no portion of the highways revenue is to be retained by the Consolidated Fund the .budgetary position is not affected. Apart from highways the percentages for taxation revenue are, last year 39.40 and this year 39.70.

“The main sources of Consolidated Fund revenue all show an increased percentage of collection compared with the same period of 1934-35. Comparative percentages are as follows:—Customs, last year 46.93, this year 47.68; sales tax, 47.03 and 47.31, stamp and death duties, 44.81 and 48.02; interest, 33.09 and 35.49; other receipts, 24.19 and 36.17. Summed up the revenue figures show that the buoyancy of taxation returns noted last year is being more than maintained, while interest and other receipts are well up f to expectations. . “Comparative figures tor the main, classes of expenditure tor the half-year are:-r-Permanent Appropriations.

Totals £12,860,000 £11,738,000 “The large decrease under debt, services is mostly nominal as transfers under the Repayment of Public Debt Act were made earlier last year. However, it is estimated that there will be a daj» crease of about £300,000 tor the year, due to the reduction in interest charges. The decrease under exchange. also is purely nominal, while the increases shown under other headings are in accordance with the proposals for the year. “The position as a whole is very gratifying. The figures show that as the result of measures we have taken in the past the Dominion has returned to a position of budgetary stability. There is clear evidence, too, that the marked improvement generally in economic conditions over the past few years is progressive in effect.”

Taxation Interest Other receipts .. 1934-35 . £8,200,239 969,809 730,037 1935-36 £8,400,104 927,735 870,989 Totals . £9,900,125 £10,198,828

1934-35. 1935-36 Debt services ... £5,826,000 . £4,569,000 Exchange 1,417,000 958,000 Other approps. 947iOOO 1,192,000 1 Annual Appropriations Social, services .. 3,114,000 3,323,000 Other votes .... 1,556,000 1,706,000