SURPLUS OF £40,000.

Waikato Times, Volume 114, Issue 19100, 10 November 1933, Page 3

SURPLUS OF £40,000.

ECONOMIES EFFECTED.

ft estimated revenue exceeded.

(Special to Times ) WELLINGTON, Thursday

The Minister of Finance, the Right Hon. J. G. Coates, delivered his Budget speech in the House of Representative! this evening. He said, inter alia: Public Accounts.

When the year opened the country was confronted with a prospective budgetary shortage estimated at £B,.300,000. The remedial, measures adopted, together with an improved outlook for revenue were calculated to reduce the deficit to within £1,000,000. The revenue exceeded expectations by a substantial amount, £938,000, while a net saving of £112,000 was effected, notwithstanding that an unexpected item of £470,000, for purchase of surplus exchange, was included in the accounts. The net result was a small surplus of £40,000. Having regard to the position when the year opened, it will, I think, be agreed that this result is very satisfactory. Revenue. The revenue received amounted to £22,568,521, comprising taxation receipts, £15,605,206; interest, £2,64.1,710; and other departmental receipts, £1,821,605; whilst £2,500,000 was drawn from reserves. Hie revenue from 'taxation exceeded the estimate by £BOO,OOO, the principal items in excess being Customs duties, £431,000; income tax, £156,000; stamp and death duties, £99,000; and motor vehicles duties, etc., £70,000. With two minor exceptions, every item of taxation exceeded the estimate. This appears to indicate that we have come to the end of the constant heavy shrinkages in revenue that have been such a disturbing factor in budgeting since the depression descended. The net railway revenue exceeded the estimate by £IIO,OOO. This is concrete evidence of an improving tendency in the finances of this important branch of the Dominion’s transport services. Registration and other fees yielded some £37,000 in excess of what might reasonably have been expected under current economic conditions. Expenditure. The net expenditure totalled £22,528,379, against an estimate of £22,640,952, a saving of £112,573. Having regard to the fact that the estimates were carefully pruned and gave effect to most of the recommendations of the National Expenditure Commission, the saving of this additional amount was no mean achievement. Treasury Bills. The published accounts show that Treasury bills Issued under the Public Revenues Act tQ meet cash requirements amounted to £22,974,406, including Issues in renewal. The total accommodation received, however, was £6,060,000, of which £3,700,000 was obtained from the banks and £2,360,000 from 'Government accounts and the public. The balance consisted of issues in renewal of these bills and also of ‘the £3,050,000 of bills outstanding on March 31, 1932. The bills issued had a currency not exceeding three months, and were discounted at rates ranging from 3 per cent to 4 per cent in the case of bills taken up by Government accounts and the public, and £5 8s 9d and 5i per cent per annum in the case of bills Issued to the banks.

In the aggregate, £24,419,406 of revenue bills were paid off, the amount being £1,445,000 in excess of the issues: The result was that by March 31 last revenue bills outstanding had been reduced to £1,585,000. all of which were held by Government accounts.

In addition to these revenue bills, transactions under the Banks Indemnity (Exchange) Act resulted in the issue of £2,858,034 19s 7d of bills to the banks, of which £477,697 19s 7d was repaid, leaving £2,380,337 -outstanding on March 31. These bills, which were discounted at the rate of £5 8s 9d pef cent per annum, represented the purchase price of £1,910,000 of surplus London funds taken over under the guarantee arrangements.

As a result of all these operations, the floating debt as at March 31 last amounted to £3,965,337, as compared with £3,030,000 as at March 31, 1932, an increase of £935,337 for the year. Public Debt. Apart from the operations affeoting the floating debt, there was a net reduction in the amount of the public debt during the year of £255,179. Additional long term debt to the amount of £2,506,256 was raised In New Zealand and £5,000,000 in London for the following purposes: Public works (including hydro-electric supply), £1,146,661; land for settlements, £250,000; native land settlement, £191,000; State forests, £170,000; redemptions of debt, £5,748,595. Redemptions of long term debt during the financial year amounted to £7,761,435.

Thanks to the generosity of Great Britain in extending the moratorium on our funded war debt and certain other debts due to the British Government, no payments were made in respect of this portion of the debt during last financial year.

To provide the funds for carrying on a limited programme of public works and land development during the current year, the Government is offering stock and debentures hearing interest at 3J per cent, to mature on November 15, 1941. In addition, the sale of Post Ofllee Investment certificates has re'ccntly been resumed. The new form of Issue will, I think, bo even more popular than the certificates previously on sale, ns some new features have been Introduced on the lines of the British national savings certificates In that, although a definite currency of six years is provided for, flic certificates will have a graduated redemption value after six months from the date of issue. In addition, if not presented for payment, the cerlificnles will remain interesthearing for four years after the fixed maturity date. The redemption value for the fixed period of six years has been calculated on the basis of approximately 3J per cent, interest compounded.