HEAVY DEFICIT IN NATIONAL ACCOUNTS

Bay of Plenty Times, Volume LX, Issue 10826, 24 March 1932, Page 3

HEAVY DEFICIT IN NATIONAL ACCOUNTS

Estimated at About £2,500,000. REVENUE FALLS SHORT. Wellington. March 24. A statement on the public finances was made in the House of Representatives yesterday by the Minister of Finance, the Hon. W. Downie Stewart.

Mr Stewart said it was his intention as soon as possible to lay before the House a. financial statement giving full particulars in regard to the outcome of the public linances for tliis financial year and the prospective position for the next financial year, together with an outline of the Government's proposals for dealing with the anticipated situation. He stated that the total revenue for the 11 months amounted to £H5.3 45,151. This amount is equal to only about two-thirds of the estimated revenue for the year, viz., £24.660,000, but the position is not as had as these total figures appear to indicate, as the revenue from income tax is almost wholly received riming March, and the receipts under various interest items, transfers from hank reserves. etc., are not spread evenly over the year. The main and supplementary Budget, provision was ma.de to cope with shrinkages amount to over £6,000,000. Notwithstanding this unprecedented effort, it now seems clear that there will tie a shortage of revenue of at, least £2,000,000. It will thus he evident, that the combined increased expenditure and shortage of revenue will produce a deficit for the year of about £2,500,000, although the exact figure cannot, be arrived at until after the close of the financial year.