BUDGET FOR YEAR BALANCED

Dominion, Volume 26, Issue 182, 29 April 1933, Page 12

BUDGET FOR YEAR BALANCED

Welcome Announcement by Rt. Hon. J. G. Coates SMALL SURPLUS OF FEW THOUSANDS Preliminary Statement Reviewing Public Accounts A balanced Budget for the past financial year ended March 31st last was announced by the Minister of Finance, Rt. Hon. J. G. Coates, in a statement issued last evening. Mr. Coates said the Public Accounts for the past year were now practically complete, although some final adjustments had yet to be made and the accounts had still to be audited. Subject to final adjustments of a minor nature there was a small surplus. Mr. Coates said that until such time as the figures were finally audited he did not think it advisable to review the results in detail. He explained I<rat total revenue had exceeded expectations, and that rigid control had resulted in substantial savings in some classes of expenditure. In a statement made in January last be had indicated the final deficit would not exceed (£700,000, but with the improved revenue position, together with the savings made in expenditure, it had been possible to bridge the gap, despite the fact that the Budget had to be charged with additional expenditure for exchange.

Mr. Coates stated he was very pleased to be able to announce that the year closed with the Budget balanced. Subject to final adjustments of a minor nature there was a small surplus of a few thousand pounds. "When the accounts are finalised this may possibly be subject to slight variation,” said Mr. Coates, "but whatever the exact final result it is clear that after a very strenuous budgetary year we can say with satisfaction that the Budget has been balanced. “Until such time as the figures are finally audited. I do not think it advisable to review the results in detail, but can say that the revenue in total exceeded expectations, while as a result of rigid control substantial savings were made in some items of expenditure. Purchase of Exchange. “Further, the expenditure included an amount of £470,000 for purchase of exchange under the Banks’ Indemnity (Exchange) Act, which was not allowed for when the Budget was prepared. That is to say, exchange to the amount of £1,910.000 in excess of actual requirements for the year ended March 31 last was purchased from the banks. “Reviewing the budgetary position for the year, it will be recollected that before the year opened it was estimated that we were faced with a prospective deficit of no less than £8,300,000, and drastic steps were taken with a view to bringing the amount down

to not more than £2,000,900, as it was thought it would not be possible to do more than this. Some improvement in tiie revenue prospects, however, lessened the gap to be bridged and with £2,355.000 saved by economies and adjustments and £2.500.000 from reserves, the initial objective would have been achieved. Britain’s Helping Ilaiul. “Again, as a result of the personal representations in London of the Hon. W. Downie Stewart, Great Britain extended a helping hand by consenting to postpone for another year all payments due under our Funded War Debt. The net result then was that allowing for supplementary estimates and contingencies, the Budget programme provided for an estimated deficit of about £1,009,000. "In my January statement I indicated that the final deficit would not exceed £700.000. but tiie position continued to improve right up to the close of the year so that the additional revenue received together with substantial savings in expenditure has been sufficient to bridge the remaining gap. notwithstanding tiie fact that the Budget had to be charged with additional expenditure for exchange. “Considering the serious position that had to be faced when the year opened.” Mr. Coates concluded, “I think it will be generally conceded that the result for the year is very satisfactory. The final audited accounts will be published next month in the usual way.”