N.Z. FINANCES.

Waikato Times, Volume 115, Issue 19272, 2 June 1934, Page 5

N.Z. FINANCES.

DEFICIT OF £709,000. r STATEMENT BY MINISTER. / * ECONOMIC 'POSITION BETTER. AUCKLAND, Saturday. The Minister of .Finance, the Rt. Hon. J. G. Coates, commenting upon the audited accounts for the past financial year, said that, as announced in his preliminary statement issued shortly after the close of the financial year, the net result of the year’s transactions was that the .Budget deficiency had been reduced to about one-third of what was anticipated when the Budget was brought down. The deficiency had now been defined as approximately £709,000, a result which must be regarded as very satisfactory, and a further indication that the economic position of the Dominion was improving. The shortage as contemplated in the Budget was £2,094,000. However, arising out of the fact that the revenue exceeded expectations to the extent of £1,200,000, and sustained economy in al! avenues of expenditure resultedJn savings totalling approximately.£22s,000, the deficiency had been reduced to £709,000. Revenue Receipts.

The revenue receipts are summarised as foil’ows:—

In the taxation group practically all the Items contributed to the improvement of £B4 5,000 over the estimate, the main items being: Customs and beer duty, £290,000; sales’tax, £97,000; stamp and death duties, £113,000; and income tax, £261,000. The improved position of the net railway revenue for the past year, said Mr Coates, was almost wholly responsible for the increase of £312,000 in interest receipts, the excess in this item alone being £294,000. Other receipts showed an improvement of £28,000 on the estimate. Most of the items assisted towards this result, the principal increases being: Registration and other fees, £9000; national endowment revenue, £19,000; territorial revenue, £65,000; and miscellaneous. £46,000. Tiie Post and Telegraph Department’s profit fell £95,000 short of the estimate, and the Justice Department’s receipts dropped by £21,000. The Expenditure. The expenditure for the year was as under:—

£24,156,846 £24,202,027 £254,819 •Over appropriation.

A Pressing Need.

“It will 'be evident that the actual expenditure under all heads has been kept very close to the amount appropriated, the expenditure in most of the i cases being slightly less than the i amount authorised,’’ said Mr Coates. I "The result has been attained | through the general recognition of the i pressing need for economy, and the j continued efforts to effect savings wherever possible. "In so far as exchange operations arc concerned, the amount of £1,797,000 included in the expenditure charged against the Budget for the year represents the-net cost to the Consolidated Fund of purchasing £8,500,000 for normal requirements In London i and Australia. I “The total amount of sterling purchased under tho Banks’ Indemnity j (Exchange) Act during the financial year was £26,684,000, but this inI eludes the £8,500,000 for normal requirements just referred to. The surplus sterling taken over thus amounted to £18,184,000. Adding £1,910,000 surplus sterling taken over during the previous financial year, the total amount of surplus sterling held on March 31 last was £20,094,000. As previously indicated, this amount will he taken over by the Reserve Bank.”

Estimate Receipts Excess over 1033-34 1033-34 Estimate £ £ £ Taxation 16,214,000 17,050,820 845,829 Interest 2,551,000 2,S63,S56 312,S56 Other receipts 3,540,810 3,569,063 28,253 £2 2,305,810 £2 3,402,748 £1 ,186.93S

ExUnder appriation penditure propria-1933-34 1 933-3-1 tion £ £ £ Permanent Appropriations— Debt service 10,445,481 10,397,333 48,1-18 Highways 1,179,000 1,201,837 2 2,S37 * Exchange i,7«o,ooo 1,797,1S8 7,188* Other special Acts & services 330,707 353,796 14,029* Annua] Appropriations. Legislative, Prime Minister’s Department & Finance 393,129 371,67-1 21,455 General administration 816,867 790,209 26,65S Law & order 609,09-i 673,27-1 25,820 Defence OSS, 9-18 662,108 26,840 Maintenance or buildings, etc. 90,600 72,103 IS,197 Development or primary and secondary Industries 1,078,153 1,036,7-12 41,411 Social services 6,935,807 6,845,-163 90,344