Over £4,000,000

Manawatu Times, Volume LVI, Issue 7065, 26 January 1933, Page 7

Over £4,000,000

THIS YEAR’S DEFICIT EFFECT OF EXCHANGE WELLINGTON, Last Night. To-day the Government faces a deficit of £4,050,000. This announcement was made, it is understood, to the Coalition caucus yesterday. Of this amount, the increase in the exchange rate will affect the national finances by £3,050,000, according to the estimate put forward. This is made up as follows: —

Drop in Customs duties .. 1,000,000 Indemnity to banks 1,050,000 Increase in overseas debt charges • • • • 1,000,000

To this must be added the present deficit of £1,000,000. Tho Government lias budgeted for a deficit of £Bfi,ooo, which, with contingencies, would probably reach £1,000,000. The actual position at the end of the financial year is difficult to forecast at the moment, for in tho present quarter the Government will receivo most of the income tax. Tho economists hold the view that £2,000,000 would be a manageable deficit, and in order to conform to this view it would bo necessary for the Government to budget for extra revenue of just over £2,000,000. “ALI BABA OUTDONE” “It is rather humorous to read at tho beginning of the minutes of our last meeting,” said Councillor A. Anderson at tho Lower Hutt Borough Council meeting last night, “that the Prime Minister promised to give serious consideration to tho representation'! of this council against the raising of the exchange rate.” “I once had the illusion,” continued Councillor Anderson, ‘‘ that nothing could excel the exploits of Ali Baba and his forty thieves, but tho Government has effectively and completely dispelled that illusion.” Members of the council were evidently in accord with the views expressed by Councillor Anderson, but considered it hopeless to take further action.