NATIONAL FINANCES

Waikato Times, Volume 116, Issue 19407, 6 November 1934, Page 6

NATIONAL FINANCES

HALF-YEAR’S RETURNS.

AN ALL-ROUND INCREASE. REVENUE £1,646,000 HIGHER. (By Telegraph.—Press Association.) J WELLINGTON, Monday. T A preliminary statement regarding I the public accounts for the half-year ended September 30 was made by the Minister of Finance, Rt.. Hon. J. G. 1 Coates, to-night during the debate on the Appropriation 'Bill. • _ t “The accounts for the period, which , will be gazetted shortly, will show: that the revenue for the period amounted to £9,900,125, compared with £8,254,098, an increase of £l,- > 646,027. Of this increase £1,390,000 represent buoyancy in taxation receipts, the principal items concerned being: Customs and excise £500,000 higher; sales tax, £160,000; motor vehicles, duties, licences, etc.; £IOO,000; stamp and death duties, £310,000. The remaining £256,000 of the increase came from Interest and other receipts, practically every Item contributing. The revenue is normally higher in the second half of the year, and last •financial year only 35 per cent, of the total 'revenue for the year was received during the first six months. For the current period the receipts for the half-year represent 40 per cent, of the Budget estimates, thus indicating that so far the receipts are well up to 'Budget expectations. “On the other side of the picture, expenditure • for the six months amounted to £12,860,571- The main classes of expenditure involved in round 'figures were as follows:—Debt services, £5,826,000; exchange, £i,417,000; other permanent appropriations, £’947,000; social services, £3,114,000; other services, £1,556,000; •total, £12,860,000.

MR COATES’ COMMENT. BUDGETING JUSTIFIED. “NOT OVER OPTIMISTIC." WELL WITHIN AGGREGATE* (Times Correspondent.) WELLINGTON, Monday. Commenting on the state of affairs shown in the provisional returns of the 'State revenue and expenditure, the Minister of Finance, the 'Rt. Hon. J* G. Coates, .said this evening that the total of expenditure to date was approximately £1,000,000 ahead of the proportionate part of the Budget estimate. Substantially the full amount, however, allowed for debt repayment for the year had already been paid out, and this item accounted for £750,000 of the apparent excess expenditure.

“Similarly,"-added Mr Coates, “the expenditure on exchange included covers requirements for the whole year. In fact there are some credits still to come, so that the net expenditure for the year on this aocount will be slightly less than is shown for the half year. This Item accounts for a further £750,000 of the excess over the proportionate part of the estimates. Satisfactory Position. “This means that other items were proportionately underspent to the extent of £500,000, but I do not hope to maintain that position until the end of the financial year, as it 1s largely duo to seasonal or accounting fluctuations. Analysis of the figures will show, however, that expenditure generally Is being held within the aggregate allowed in the estimates. This satisfactory state of affairs, combined with the fact that the revenue is well up to expectations, supports the Budget forecast that the year will close with a small surplus. “Many factors are Involved, and not the least is the psychological reaction and interaction from the steps already taken and the proposals made for economio rehabilitation ‘generally. Trade and Industry are, of course, the basis upon which the IBudget rests, and as Minister of Finance I am always on the look out for indications of continued improvement. Up to the present the trend of affairs shows that the budgeting was not over optimistic.” Comparison with Last Year. A comparison of the revenue and expenditure for the half-year, as announced by the Minister of Finance, with that for the corresponding period in 1933-34 Is as follows: —

civ mths. 1931-35 1933-31 Increase Revenue £9,900,125. £8,251,008 £1,616,027 Expenditure— Perm. ) 6,385,699 ) 12,860,571 Annual ) 1,605,911 10,901,610 1,868,931 Excess £2,060,116 £2,737,512 £222,901 The detailed Hems of revenue and expenditure, in round figures, as given or indicated by the Minister compare as follows: REVENUE. . 193 1-35 1033-31 Increase £ £ £ Customs and OXCise . . 3,775,000 3,275,000 500,000 Safes Tax . 1,0 11,000 861,000 Motor V’cles 150,000 duties, licences, etc. 1,008,000 008,000 100,000 Stamps and death dut. 1,575,000 1,265,000 Interest and .310,000 other receipts .. 1,690,000 1,113,000 256,000 EXPENDITURE. 1931-35 1933-31 Increase £ £ £ Debt serv. 5,826.000 3,859.000 1,007,000 Exchange . 1,117,000 1,000,000 *183,000 Other perm. 917,000 620,000 321,000 Total perm. 8,190,000 0,385,000 1,805,000 Social serv. 3,1 11,000 3,136,000 *22,000 Other serv. 1,556,000 1,170,000 86,000 Tl. annual 1,070,000 1,600,000 01,000 Gn. Tl. £12,860,000 £10,991,000 £1 1,809,000 •Decrease.