INFLATION IN CHILE

Nelson Evening Mail, Volume LXVI, 13 February 1933, Page 10

INFLATION IN CHILE

CONDITION OE PUBLIC FINANCES A slateiiio... revealing (lie condition ol tiie public finances of Chile, concealed By previous dictatorships, jras made recently by the Minister of Finance. There was ’a budgetary deficit last, year and this year’s Budget forecasts a mil her tie licit of 15b million pesos (equivalent at 3,1 In Hie peso to ill ,950.000), revenue being eslimaled at L6.J75.000 and expenditure at J 08 ,125.000. No provision was made last year or this year for changes on foreign’debts, which amount to 300 million pesos (ol 6d) a year. At the official rate of exchange of 3d, current in December, the foreign debt service charges amount to about 20 per cent, moie than the country's total expected revenue. As the official rale of exchange is nominal only —and quite liet it ions—tint percentage of the foreign debt service charges lo I lie national Budget is fantastic. During the past year or so the various Governments in power have arranged their finance by the issue of Treasury bills. When the. statement .vns published, lulls had been issued to the amount of 592 million pesos (say £7400,000). This amount was not included in Hi,. Budget figures, or in the total of internal loans, or anywhere else. The Government seems to ho content to leave ouch issues merely as an inflation of tho monetary circulation in the country, which normally is in the neighbourhood of 400 million pesos only. During the period of exchange: control, the olliet t! rate Inis been reduced from 6d to 3d to the peso, hut commercial transactions assess the. currency at 70 or 80 pesos to one penny.