PUBLIC ACCOUNTS

Timaru Herald, Volume CXL, Issue 20261, 9 November 1935, Page 8

PUBLIC ACCOUNTS

A SATISFACTORY POSITION REVENUE BUOYANT EXPENDITURE LOWER BY £1,122,000 By Telegrapu—Press Association PAPAROA, November 8. A highly satisfactory position is disclosed by the public accounts for the half year ended September 30. The figures were announced to-day by the Minister of Finance, the Rt. Hon. J. G. Coates. The receipts for the six months are placed at £10,198,828, an increase of £298,703 on the figures for" the first half of last year, while the expenditure totals £11,738;000, a decrease of £1,122,000 on the sum paid out in the corresponding period of 1934-35. “The figures as disclosed by the audited accounts support very strongly the estimates made in the Budget,” Mr Coates said. “The year’s financial statement was based on an expected increase of taxation revenue and bydecreases allowed for under the headings of interest and other receipts. The results for the half-year generally bear out the Budget forecast, the detailed figures being as follows: 1934-35 1935-76 £ £ Taxation 8,200,239 8,400.104 Interest .. .. .. 969,809 927,735 Other receipts .. 730,037 870,989 Total .. .. .. 9,900,125 10,198,828 “The buoyancy of taxation receipts is represented by an advance of £199,865. There are increases of £283,177 ;n Customs receipts and £150,014 in sales tax. The stamp and death duties show a fall of £276,174, but this was expected as the abnomal receipts under this heading last year exceeded the estimate by nearly £BOO,OOO, The revenue from land and income tax will not be known until later in the year, but it is confidently anticipated that the 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 for 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 petrel tax causes a lag of one monh. Under an 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, this year 39.70. The main sources of Consolidated Fund revenue all show an increased percentage collection as compared with the same period of 1934-35. The comparative percentages are as follows: 1934-35 1935-36 Customs 46.93 47.68 Sales tax 47.03 47.31 Stamp & death duties 44.81 48.02 Interest .. 33.09 35.49 Other receipts .. .. 24.19 36.17 “Summed up, the revenue figures show that the buoyancy of the taxation returns noted last year is being more than maintained, while interest and other receipts are well up to expectations. The comparative figures for main classes of expenditure for the half year are as follows: Permanent Appropriations. 1934-35 1935-36 £ £ Debt services .. 5.836,000 4,569,000 Exchange .. .. 1,417,000 958,000 Other Apprns. .. 947,000 1,192,000 Annual Appropriations. Social services .. 3,114,000 3,323,000 Other votes .. .. 1,556,000 1,706,000 Total 12,860,000 11,738,000 "The large decrease under debt services is mostly nominal as transfers under the Repayment of the Public Debt Act were made earlier last year. However, it is estimated that there will be a decrease of about £300,000 for the year owing to the reduction of interest charges. The decrease under exchange is also purely nominal, while the increases shown under the other headings are in accordance with the proposals for the year. The position as a whole is very gratifying. The figures show that as a result of the measures we have taken in the past the Dominion has returned to a position of budgetary stability. There is clear cut evidence, too, that the marked improvement generally in economic conditions over the last few years has been progressive in effect.”