REVENUE AND DEBT

New Zealand Herald, Volume LXXV, Issue 23018, 21 April 1938, Page 10

REVENUE AND DEBT

The Prime Minister's brief reference in his speech last night to the results of the financial year 1937-38 was not very informative. It is too early to expect exact figures or details, but even the little he was able to tell is interesting. Mr. Savage announced a surplus of approximately £BOO,OOO. In the Financial Statement Mr. Nash budgeted for an expenditure of £34,428,000 and allowed £300,000 in addition for Supplementary Estimates. These actually amounted to £1,613,000, making the total prospective expenditure £36,041,000. Assuming the estimates to have been equalled, a revenue of £36,841,000 would be required to produce a surplus of £BOO,OOO. The sum is a colossal one, judged by the standards of comparatively recent years. Mr. Savage also said the public debt would be less at the end of the financial year than it was at the beginning. The statement is frankly puzzling. There was a budget forecast of £17,367,000 to be spent on public works during the year, and it was estimated that, with balances in hand and amounts received from the Post Office Savings Bank and other departments, requirements could be met. Even so, resorting to the departments ois borrowing. Again, an expenditure of £1,500,000 on housing was forecast, the Minister of Finance adding "the money for the housing scheme is being provided by the Reserve Bank." Possibly, but not as a gift; again it is borrowing, and the accounts of the bank show that by March 31 all advances except for the marketing of .primary produce had been repaid. When, in face of these facts, the Prime Minister indicates not only no increase in the net debt, but an actual reduction, he whets the appetite for more information. The public will be justified in looking forward to the next Budget with consuming curiosity to know how this measure of financial wizardry has been achieved.