DROP IN REVENUE.

New Zealand Herald, Volume LXVII, Issue 20730, 25 November 1930, Page 8

DROP IN REVENUE.

GOVERNMENT'S PROBLEM. EXPENDITURE TO BE REVISED. CABINET MEETS THIS WEEK. Moro than ordinary significance attaches lo ;i meeting of the Cabinet to be held in Wellington on Thursday when, it is understood, the financial position of the Dominion will conic under close scrutiny ahd measures will l>e taken to avoid the deficit which is now looming as the result of revenue anticipations not being realised. The Budget, in its summary of the estimated results of the current year's finances, anticipated that revenue would amount to £25,120,000 and expenditure to £24,874,000, leaving an estimated surplus of £246,000. However, it is now believed that the Government is perturbed lest expenditure, should actually outrun revenue. It is known that (lie heads of the various Government departments have been instructed to confer with the Cabinet on Thursday and it is believed the urgency will be impressed on them of effecting further savings wherever possible. Although Parliament has passed the Estimates for the year in substantially the form in which the Government submitted them, the Government is now anxious to prune its own Estimates. It is believed that, owing to the contraction of imports, particularly ntotor-cars, the yield of £8,530,000 estimated from Customs duties this year is not likely to be realised. This is believed lo be one of the most embarrassing problems to the Government at the moment. Expenditure falls under two general heads, permanent appropriations and annual votes, which are respectively estimated to amount to £17,289,000 and £7,585,000, or a total of £24,874,000 this year. There are many statutory charges, the meeting of which the Government cannot avoid, so the only practical remedy, remaining is lo strive still further to economise in the departmental expenditure classified under annual votes. The acting-Prime Minister, the Hon. E. A. Ransom, who has been indisposed, left Wellington for his home yesterday. He will take a rest from official duties and will be absent from Wellington for about a fortnight. In the meantime Mr. Ransom's duties will be undertaken by the Minister of Mative Affairs, Sir Apirana Ngata.