TREASURY BILLS

Hawke's Bay Tribune, Volume XXIII, Issue 73, 8 March 1933, Page 8

TREASURY BILLS

HALF ESTIMATED EXPENDITURE. FINANCING BUDGET DEFICITS. Wellington, March 7. Authority for the issue of Treasury bills to the extent of oue-half of the estimated expenditure instead of onethird, as at present, is sought by a clause iu the Finance Bill.

The Kt. Hon. J. G. Coates, explaining tho clause said: “Until recent years, where a large balance was carried forward in the Consolidated Fund it was unnecessary to utilise to any great extent the provisions dealing with Treasury bills. Owing to the depletion of our resources, however, it is necessary to rely more extensively on Treasury bills to meet ordinary expenditure until the revenue comes to hand later in the year. This applies more particularly in tho case of income tax, which provides a substantial amount of revenue but which is not received until near the end of the financial year, although expenditure in anticipation of such revenue is more or less constant. “Under the Imperial system,” continued the Minister, “Treasury bills may be issued up to the full extent of estimated expenditure, but it is not considered necessary fur the time being to widen our legislation to such an extent. “It may be added that tho deficit for last year and this year will in the meantime be financed on Treasury bills. This will decrease the authority available for next financial year accordingly. Tn addition, we have to allow for the fact that wc will be budgeting for a deficit next financial j year.”