DEFICITS IN AUSTRALIA.

Hawera Star, Volume XLVII, 18 July 1928, Page 5

DEFICITS IN AUSTRALIA.

BIG FEDERAL SHORTAGE

TREASURER’S NEW EXPERIENCE

Deficits are quite a common occurrence in Australian government iin r ante, nut e.eu so it cannot lie dtnieii that the public is a little uneasy at tne ract that the Federal Treasurer, Dr. Page, ior the first time since he toon onii e five years ago, will show a balance on the wrong side of the ledger. Onicial ngur&s are not yet availa.de, but it can be stated with certainty that the Federal deiicit will exceed £3,Odd,i, O'j. Customs receipts have been a.most entirely responsible for the serious fall-ing-oil in revenue. X'ostal receipts and customs revenue together will he more than £3,000,000 less than the treasurer estimated. Tilts will have a serious effect on the policies of the States which, in the past, have acted in a manner suggesting that they knew quite well the buoyant nature of the Federal revenue and that the Federal Government would come to their assistance ii they found themselves in serious difficulty. The Federal authorities have, in fact, assisted Tasmania and Western Australia, and the recent financial agreement means that the Commonwealth will contribute to the States £1 ,000,00.) more annually than it did under the old per capita system. Now the Federal Government, generous in the past almost to a fault, is forced to explore every avenue of saving in order to avoid increasing taxation. And this at a time when it was confidently hoped that a cry soon the Gommomvealth Avou.d lie able to evacuate the field of direct taxation.

The Budget that AvilL be brought down later will anticipate a oontiimance <>. low customs receipts. In view of the Federal Loan Council’s decision to restrict borrowing, departmental estimates have been deterred, and instruotions have been to reduce them as far as possible. Instructions have gone forth that every means of curtailing expenditure must he adopted. Nonessential Avorks will he deterred and the amounts provided for the development of Canberra Avill he reduced to a sum sufficient to maintain essential 1 services and to provide office and living accommodation for the staffs. The- New .South Wales financial year closed last Saturday, and it is estimated that the deficit will he between £ 1,000,(MX) and £1,200,003, Avliich is about £400.000 less than the amount estimated by the Government some months ago. ' The improved position is accounted for by the general improve motif, in the finances of the State dining the last lew months.