OUR FINANCES

Waikato Times, Volume 108, Issue 18158, 24 October 1930, Page 8

OUR FINANCES

HALF-YEARLY STATEMENT. DECREASE IN CUSTOMS REVENUE. RECEIPTS BELOW ESTIMATES. (By Telegraph.—Press Association.) WELLINGTON, Friday. Speaking during the debate on the appropriation Bill, in the House of Representatives, the acting-Prime Minister, the Hon. E. A- Ransom, said the accounts for .the half year ended September 30 are at present under audit and will probably not be ready for publication until about the end of next week. However, I now propose _to make a short 'statement of the position based on the preliminary figures which are still subject to audit. “ The revenue of the consolidated fund for six months' amounted to £9,057,880, compared with £10,169,347 for the corresponding period of last year, a net decrease of £1,111,467. Principal item concerned in f his comparative falling off is the interest on capital liability of the railways, where receipts for the six months amount to £50,000, compared with £1,140,000 for the first half of 19'2 -t—3U. The best part of the year from the point of view of railway revenue is yet to come, but the falling off approximately of £750,000 for the year was allowed for in the budget. , “ Customs revenue for the sjx months amounted approximately to £4,091,000, a falling off of £277,000 compared with the receipts fop the first six months of the last financial year. A decrease in customs, revenue was allowed for in the/budget, but even so, receipts for the six months fall short of the half estimate for the year by about £174,000. Of course the .amended tariff had been in operation for about two months only, but against this the temporary inflation of revenue consequent upon abnormal withdrawals from bond prior to. the tariff changes had not yet adjusted itself. Imports for six months, excluding £250,000 of specie imported, show a comparative falling off of approximately £3,600,000 or 14 per cent, equivalent to a falling off of £600,000 in the customs revenue. - • Further Shortage Likely. “ Furthermore it is evident that the reduced demand within the Dominion, coupled with falling prices abroad, ;s leading importers to order as litUe as possible until the markets show sign= of reaching bottom. It is thus practically certain that there will be further substantial contraction in imports. The contraction will probably be great- , est in the semi luxury items on which /duties are highest. «The whole position and prospects for the balance of the financial year have been carefully reviewed and it seems probable that the customs revenue will fall short of the budget estimate by at least £250,000. The yield from other revenue items Is by no means certain, but should reach the estimate. Preliminary figures show that the net expenditure for six months amounted to £12,237,467 compared with £11,846,300 for tae same period of last year. An increase of £391,167 made up as follows: manent appropriations, 1930, £8,591,560, 1929, £8,157,534; annual appropriations, 1930, £3,645,907, 1929, £3,688,766, giving totals of £12,237,467 for 1930 and £11,846,300 for 1929. The expenditure under permanent appropriations for this year however, includes £1,183,000 or very nearly full year’s expenditure under the repayment of the public debt act, 1923, whereas only £462,000 had been the expenditure under this item during the same period of last year- The comparison thus includes a nominal increase of about £700,000. The net expenditure on interest is practically the same as for the first six months of last year, while there was a net decrease of approximately £302,000 under heading of special acts of legislature. It will thus be clear that apart from the nominal increase in the debt repayment charge, there was net decrease in expenditure under the permanent appropriations.

Economy Promised. “ Expenditure under annual votes showed a comparative net decrease of £42,859. In the case of several votes, defence for instance, economies instituted will lead to greater reductions in expenditure during the present half year. In fact this will be necessary, as allowing for the amount added by the supplementary estimates, the amount provided for this year is £266,000 less than the last year’s expenditure. However, even after adding the Imprests outstanding to expenditure, the total is less than the proportionate part of estimate for the year, and it is expected that the -strict control to he maintained over expenditure will ensure that it is kept within the estimate.

“Supplementary estimates for the consolidated fund this year have been restricted to the unusually low total of £123,000, although £246,000 was allowed for the supplementary estimates and contingencies in budget. “ A certain amount will doubtless be required for unauthorised e?»p en< 3iEure, but for' the most part the difference will be utilised towards counterbalancing the estimated shortage In customs revenue.

“In regard to the balance of the probable shortage; I have already issued instructions that expenditure during the remainder of the financial year is to be reduced, and with exercise of strictest economy in detail, which will receive the close attention of the Government, it is hoped that accounts for the year will be balanced.”