THE NATIONAL ACCOUNTS

New Zealand Herald, Volume LXIX, Issue 21223, 1 July 1932, Page 12

THE NATIONAL ACCOUNTS

DEiFICIT. TOTALS £2,140,800.

HEAVY FALL IN* REVENUE.

EXPENDITURE NEAR ESTIMATE.

[BV telegraph.—own correspondent. ] WELLINGTON, Thursday.

Tho actual deficit for tho financial year ended March 31, 1932, is shown by the audited accounts published in a supplementary Gazette issued to-day to bo £2,140,819, or, roughly, £400,000 better than was anticipated by tho Minister of Finance, tho lion, W. Downio Stewart, when ho-mado his.estimate on tho basis of the figures for 1L months of tho year. Commenting on the figures, as actingMinister of Finance, tho Prime Minister said it would bo seen that tho actual revenue for tho year amounted to £22,719,733 and tho expenditure to £24,860,552. The deficit for last year was thus £2,140,819.

"This result;," said Mr. Forbes, "is better than was anticipated in the Financial Statement presented during tho recent session of Parliament based on a review of the figures for 11 months. It was estimated that tho deficit would bo in the vici.nity of £2,500,000, in consequence of the revenuo falling' short to tho extent of about £2,000,000 and expenditure exceeding the estimate by about £500,000. Tho forecast of revenue proved to bo substantially correct, as the actual receipts disclosed by the accounts were approximately £1,950,000 loss than was allowed for in tho Budget. Expenditure was not as great as was anticipated, and but for the fact that exchange costs to tho extent of £374,000, not allowed for in the Budget, had to ho included, tho expenditure would have been lessi than the estimates. Actually, expenditure exceeded tho Budgot estimate by £'233,000. '' The economic s were reflected in the annual votes for last year to a much freater extent; than was expected," Mr. 'orbes continued, " and ono of the most satisfactory fi.Hinu;:es of accounts is that the vote expenditure was approximately £300,000 less than the apnropriations for tba year, even though these appropriations had been very carefully overhauled and cut down to a minimum.

" A deficit of the magnitude of £2,140,000 cannot bo accepted with equanimity, but regard has to bo had to the economics circumstances prevailing. We can at least derive some satisfaction from the fact that it is not as large as wb had feared. It is of interest to note that for the most part this deficiency is caused by the extraordinary expenditure or.i exchange, £374,000, and the subsidy to the unemployment fund amounting to £.1,120,030."