POSITION IMPROVES.

Star (Christchurch), Volume XLIV, Issue 600, 2 November 1932, Page 12

POSITION IMPROVES.

Mr Forbes Makes Financial Statement. PUBLIC ACCOUNTS PRESENTED. (Special to the “ Star.”) WELLINGTON, November 2. Declaring that this was one of the first occasions on which they had been able to say that the financial position was improving, Mr Forbes, in the House last night, made an explanatory statement of the Public Accounts for the first half of the financial year, ended September 30. The statement, Mr Forbes said, would be recognised as a satisfactory one. “ There is no doubt,” said Mr Forbes, “ that we must aim for a balanced Budget. We must make sure that we don’t spend more money than we receive. The same thing applies to a country as to an individual. If the individual cannot pay his way his reputation for soundness is seriously impaired.”

Mr Forbes said that it had been shown already that the advice of New Zealand economists was just as valuable as the advice that had been given by economists in other countries.

“ The revenue for the period amounted to £7,317,231, compared with £7,347,379 received in the corresponding period of last financial year,” said Mr Forbes. “ There was thus a comparative decrease of approximately £30,000. A more important comparison, however, is with vthe Budget for the year, and in this respect I am pleased to say that, on a proportionate basis, the various items of taxation, apart from land and income tax, which are not due for payment until later, are generally well up to expectation. Customs receipts show an excess of £130,000, with the best importation period still to come, but against this allowance has to be made for the loss of £250,000 of revenue arising out of concessions under the Ottawa agreement. Stamp and death duties are approximately £130,000 behind on a proportionate basis, but this item is normally subject to fluctuations from month to month. Various Receipts. “ Duties and licenses from motor vehicles are £109,000 ahead, but this is largely due to license fees being payable in the earlier part of the year. “ Interest receipts from railways, Post and Telegraph, Public Debt Redemption Fund, etc., were £250,000 less than for the first six months of last year, and £390,000 behind on a proportionate part of the Budget estimates, but no significance attaches to this, as the receipts are not spread evenly over the year. There is no reason to believe that the Budget estimates for these items will not be reached. Satisfactory Decrease. ‘‘On the other side of the account, expenditure for the six months amounted to £9,534,570, compared with £11,463,706 for the corresponding period of 1931. There was thus a satisfactory decrease of £1,929,226. “To sum up the whole position, the more stable tendency in revenue is being maintained, while expenditure has been kept under close control, and continues to reflect economies made."