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Outcome of Commonwealth budget 1964-65



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FOR PRESS

• STATEMENT BY THE TREASURER. THE RT. HONORABLE HAROLD HOLT. M.P.

OUTCOME OF COMMONWEALTH BUDGET„ 1964-65

The Treasurer, Mr. Holt, announced today that

total Commonwealth receipts from all sources had exceeded

total Commonwealth expenditures by £18,9 million in 1964-65.

In the Budget, using a very tentative figure for loan raisings,

it had been estimated that this surplus would amount to £18.5

million.

Total expenditures, excluding redemptions, in

1964-65 were £6.2 million greater than estimated. The main

variations from the Budget estimates were expenditure on

Defence Services up £7*5 million, Departmental Other'Services

expenditure up £8.0 million, and expenditure by Business

Undertakings up £4.3 million. National Welfare Fund

expenditure was down by £6.9 million.

Total receipts of the Commonwealth, excluding

loan raisings, exceeded the Budget estimates by £59.0 million

and had amounted to £2,313*6 million. Total taxation receipts

were £52.9 million greater than the Budget estimates, of which

£39.7 million came from income tax on individuals and £8.5

million from income tax on companies.

Mr. Holt pointed out that Commonwealth receipts

during 1964-65 exceeded those of 1963-64 by £316.9 million and

this owed much to the increase obtained from the revenue

measures adopted in the last Budget, The once-for-all element

in this increase is estimated to have added about £80 million

to collections in 1964-65. Another contributing factor was

the large increases in incomes of companies and primary

producers which had occurred in 1963-64 s these incomes were

assessed to tax in 1964-65. '

2

In 1964-65, the excess of expenditures, other

than redemptions, over receipts, excluding loan raisings, was

£78.7 million a decline of £119.1 million on the corresponding

figure for 1963-64.

Mr. Holt said that.gross loan raisings amounted

to £255.7 million in 1964-65, which was £62.0 million less than

■ in 1963-64, and £19*3 million less than the tentative figure

of £275 million which had been used in the original Budget

estimates. Expenditure on redemptions, on the other hand, ·

had reached the very high total of £158.1 million, which was

£33.1 million greater than the Budget estimate and £65·9 million

greater than the corresponding total for 1963-64. Net loan

raisings in 196*+-65 were, therefore, £127.9 million lower than

in 1963-64.

Mr. Holt said that loan raisings had fallen

considerably short of the amount required to finance State

works and housing programmes and the redemptions which had to be

met from the loan raisings. It had thus been necessary for

the Commonwealth to subscribe a special loan of £66.9 million

from the Loan Consolidation and Investment Reserve. ‘

The net result of the Budget transactions in

1964-65 was a reduction of £17.1 million in Commonwealth

indebtedness in respect of outstanding Treasury Bills and

Treasury Notes ("temporary borrowings") and an increase of £1.8

million in Commonwealth cash balances. The amount of Treasury

Notes on issue declined by £36.1 million but there was a net ■

issue of £19 million of Treasury Bills (exclusive of the £50 ,

million funding operation which was carried out during the year).

The overall results for 1964-65 can be summarised

as follows ·

·?

1964-65 Actual

£'111 £'m

2,097.7 (a)

--- 9.8

2,107.5 .

State works and housing programmes 290.0

Less State domestic raisings 10»Î»

War Service Land Settlement

Mt. Isa railway project

Total Expenditures

Receipts -Consolidated Revenue Fund.

National Debt Sinking Fund

Net movement in other Trust Fund balances

Total Receipts .

279.7

3.6

1.5

2,392.3

2,209.1

96.2

_ 8 . a 2,313.6

Expenditures -Consolidated Revenue Fund

Snowy expenditure charged to Loan Fund

Excess of Expenditures over receipts to be met from Borrowings

Add Redemptions . .

Total Call on Borrowings

78.7

158.1

236.8

Borrowings -Public loan proceeds . 245·!

Drawings on I.B.R.D. loan for Snowy Mountains Hydro-electric Authority ____ 10.6

255.7

(A)

Net movement in temporary borrowings w . - 17.1

Net use of (+) or addition to (-) cash '

balances - 1.8

Total 236.8

(a) Excludes payment of £111,4 million to the Loan Consolidation and Investment Reserve, which brought total expenditure from C.R.F. to £2,209.1 million as shown in the attached Niepieyer Statement.

(b) Excludes State domestic raisings.

(c) Treasury Notes and Treasury Bills.

Canberra, A.C.T.

4th July, 1965»

C O M M O N W E A L T H O F A U S T R A L I A

STATEMENT OF THE CONSOLIDATED REVENUE FUND AT 30TH JUNE, 1965.

t'A

£' 000

RECEIPTS

Customs Excise Salei.Tax , ·

income Tax -.individuals. - Companies . . - Dividend (Withholding) Tax Payroll Tax .

Estate Duty 31ft Dtity Other.Revenue

Railways Post.Office ’

Broadcasting and Television services Territories

EXPENDITPRE

Payments to or for the States - Grants . ....

: Grants - Special Assistance ' - Additional Assistance ■ ' Commonwealth Aid Roads ; · Assistance for Universities

Other · .

National Welfare Fund - . . Age and Invalid Pensions .

Child Endowment . Unemployment and Sickness Benefits Medical Benefits ■ · . · ■ Hospital Benefits

Pharmaceutical Benefits Other ■ ■ ■

Debt Charges Other Special Appropriations Departmental - ' ' '

Administrative ■ ' Buildings, Works, etc. - .

War Service Homes ■

Snowy'Mountains Hydro-electric Authority (a) Other .

War and Service Pensions and Allowances Other Services ,

Loan Consolidation and Investment Reserve Defence Services ■ (a) Business Undertakings - Railways (b)

Post Office - Administrative Post Office - Buildings, Works, etc. Broadcasting and Television Services (b) Territories -

Administrative and Other Services Buildings, Works, etc. '

(a) See also,Loan Fund

Budget Estimate 1964-65

Month of June 1965

12 Months to 30.6.65

12 Months to 30.6.64

133.500 318,000 173.000 745,600 346.000

8,000 75.000 18.000 3,5°° 101,811

8,018 185.500

Voffl

11,752 25,598 . 16,385 93,621

9 0 ,6 8 8 566

?·$ 199 17*961 966 18Λ10 1,8821,191

. 134,389 315,479 181,380 785,262 354,522 , 8,020

75,039

. · % & 106,700 8,67? 186,324 . 16,971 11,906

116,427 291,086

68,222

' m

9 ,5 1 9

2 ,150,731 287,085 2 ,2 0 9 ,0 9 2 1,904,688.

. 340,604 15,860

. 65,000 19,000 39,316

45,423 1,226

l;K5,335

340,674 15,860

65,000 20,637 37,879

317,?84 . 11,450 20,000 58,000

16.930

. 22,496

214,670 85,700 8,700 18,400 29,125

30,230 65,328 72,413 64,522

16,819 5,470 601 1,525 2,564 2,288 6,785

Cr. 14,269 5,703

213,299 86,415 7,270 17,638 29,395 30,3,19 60,947

71,298 65,301

199,940 84,379 10,812 12,424 28,108 29,118

51,565 69,110 7 6 ,6 6 6

138,455 14,533 140,390 126,430

35,000 1 0 ,9 0 0 41,182 90,733

91,976 65,222 296,804

1,350 1,878 5,980 5,070 11,768 78,226 44,044'.

35,000 13,050 36,577 89,656 100,045 111,425 304,301

35,000 11,829 26,789

89,525 86 606 14,875 221,747

9,964 125,976 78,000 22,338

1,636 11,957 . 9,014 2,036

9,937 127,162 8θ)?44 22,493

8,834 117,646 68,561 19,405

46,897 28)416

6,500 2,340 ,

47,428 28,751

42,441 26,016

2,150,731 287,085 2,209,092 1,904,688

(b) Includes Buildings, Works, etc.

STATEMENT OF LOAN FUND EXPENDITURE AT 30TH JUNE, 1965.

£'000 .

Budget Estimate 1964-65

Month of June 1965

12 Months to 30.6.65

12 Months to 30.6.64

War Service Land Settlement Advances to States for Housing Payments to States for Works Programmes Loans (Qantas Empire Airways Ltd.) Loans (Australian National Airlines Commission) Mt. ISa Railway Agreement - Advances .

Defence Services Snowy Mountains Hydro-electric Authority Redemptions .

4,500 51’22° 231,650 10,268 3,795

2 ,3 0 8

10~750 1 0 ,0 0 0

4?3

. 9,147 19,423 337 224

137

472

1,642

3,617 51,350 2 2 8 ,3 2 8 13,146

4,283 1 ,5 0 8

9 ,8 0 0 44,356

4,262 50,150 211,834 2 ,0 1 6

560

6 ,0 5 0 38,715 11,701 28,727

324,621 31,875 356,388 354,015

UNFUNDED DEBT AND BANK BALANCES AT 30TH JUNE, 1965.

• \

£'000

Treasury Bills 58,000 Treasury Notes 40,216 Bank Balances 12,229

ROLAND WILSON Secretary to the Treasury 4th July, 1965.

HAROLD HOLT T r e a s u r e r