SOLID FINANCES

New Zealand Herald, Volume LXXV, Issue 23115, 13 August 1938, Page 14

SOLID FINANCES

With an estimated revenue of £41,794,000 in 1938-39, the South African Minister of Finance is budgeting to cover an estimated deficit of £1,052,000. This means he is providing for expenditure on a considerably more extensive scale than in the year ended March 31 last. The figure for that period was £39,547,000. Reference in a cable message to large expenditure on defence provides the certain clue to this rise in the rate of spending. While the Minister, adopting a tone of moderate caution, suggested that warnings of a probable recession in trade must be heeded, the finances of his own country, both public and general, show evidence of reassuring solidity. The past two financial years have produced surpluses of £4,352,000 and £5,840,000 respectively. Last year saw a total of exports valued at £125,000,000 sterling. Gold contributed £82,000,000 toward the sum, and wool £13,000,000. Other items of importance were diamonds, fruit and maize. The economy of the country is fairly well diversified in spite, of the dominance of gold, which is the key to the abundant prosperity of recent years. Wealth has not been accompanied by prodigality. The large surpluses have been prudently applied, being used in the main for the reduction of debt and the construction of permanent works. Social services have not been forgotten, however. Old ago pensions have been placed on a more liberal basis. There have also been concessions to the taxpayers. Were a country to be judged wholly by its public finance, South Africa could be classed at once as about the most fortunate in the world to-day. It is indeed .fortunate, but in the midst of its financial abundance, it faces its greatest problem—the white population a minority of 2,003,500 in a total of 9,588,600.