AUSTRALIAN DEFICITS

Evening Post, Volume CXXVII, Issue 75, 30 March 1939, Page 12

AUSTRALIAN DEFICITS

Australian Treasury returns for eight months of the current financial year to February 28 disclose but a slight improvement in the state of Government finances. For the eight months there was a Commonwealth and States deficit of £14,373,000. The deficit for seven months was £14,695,000. In the first eight months of 1937-38 expenditure exceeded income by £9,276,000. The largest deficit is New South Wales at £5,342,000. Revenue of all Governments for eight months amounted this year to £130,----662,000, which represents an increase of £2,722,000 on the revenue for the corresponding eight months of 1937-38. But expenditure this year amounts to £145 035,000, compared with the figure of £137,216,000—an increase of £7,819,----000 Here is to be found the reason for the sharp increase in the budgetary deficit compared with last year. Increased expenditure is due to two main causes—(a) defence needs, and (b) assistance to primary producers who have suffered from the unfavourable season. Expenditure on defence is certain to expand in the next year or so, but the need to assist rural industries might not arise next year if abnormal, weather conditions are not experienced.