REVENUE FALLS

Dominion, Volume 24, Issue 55, 28 November 1930, Page 10

REVENUE FALLS

National Finances CABINET MEETING Countering the Movement The decrease in national revenue and the possibility of further economies in various departments of State in order to balance the Budget this year were discussed throughout the whole of yesterday at a special Cabinet meeting attended by heads of Government departments. In the absence of the Acting-Prime Minister, Hon. E. A. Ransom, the Minister of Native Affairs, Sir Apirana Ngata, presided. In a statement issued during the day Sir Apirana said the problem at the moment related to contracting revenue brought about principally through a decline in Customs revenue and the probability of a serious revenue shortage in railway interest compared with the amount allowed for in the Budget. “In the first place,” Sir Apirana said, “the Government budgeted merely to balance the national ledger, and not for a surplus of £246,000. as has been stated. Reference to the Budget will show that the £246,000 referred to was at that stage of events estimated to be available for supplementary estimates and contingencies. The latter item includes unauthorised expenditure which may accrue after the Parliamentary session has ended. Falling Customs Revenue. “Further reference, if made, to the speech in the House by the ActingMinister of Finance on the Appropriation Bill will show that at that stage there had occurred evidence of a falling-off in in Customs revenue, which was estimated would amount to at least £250,000 for the year. The steps to be taken to meet that position were indicated, and it was then hoped that by careful administration and close control over expenditure for the second half of the year the accounts would be balanced as at March 31 next. “Subsequent, events have confirmed the belief that not only the estimated shortage in Customs revenue would aeerue, but in addition there is a probability of a serious revenue shortage in railway interest compared with the amount allowed for in the Budget. The position now reached is therefore due to contracting revenue, and not to a possibility of expenditure proving greater than expected, as published. "Insofar ns expenditure is concerned, the figures for, the period ended Octqber 31, including outstanding imprests, as compared with the proportionate oart of the year’s appropriations, show a total reduction for the whole of the Consolidated Fund of £664,776. Whereas it is not contended tha't this basis is necessarily a reliable guide to the year’s expenditure results owing to the incidence of payments, it nevertheless shows that the statement that the Government is now faced with the possibility of expenditure proving greater than, expected has no foundation in fact and is pure imagination.” Difficult Financial Year. Sjr Apirana Ngata said the Government had recognised all along that this year would be a particularly difficult one from the point of view of finance, and had fully taken the country into its confidence in the matter. The meeting that day was merely one of the cogs in a long series of events which the Government had dealt with in order to meet the economic difficulties of the times, and was an indication that the country could rely on the Government doing everything possible to keep the public finances on an even keel.