DOMINION FINANCE

Otago Daily Times, Issue 21940, 29 April 1933, Page 9

DOMINION FINANCE

SATISFACTORY POSITION THE BUDGET BALANCED REVENUE EXCEEDS ANTICIPATIONS (Pee United Peess Association.) WELLINGTON, April 28. The Minister of Finance (Mr J. G. Coates) stated to-day that the public accounts for the financial year ended March 31 were now practically complete, although final adjustments bad yet to be made and the accounts bad still to be audited. Mr Coates said he was very pleased to be able to announce that the year had closed with the Budget balanced, subject to final minor adjustments. There was a small surplus of a few thousand pounds, v • “ When the accounts are completed,” said the Minister, “ this may possibly be subject to a slight variation, but whatever the exact final result, it is clear that after a very strenuous budgetary year I can say with satisfaction that the Budget is balanced. Until such time as the figures are finally audited I do not: think it advisable to review the results in detail, but I can say that the ,revenue in the total exceeded the expectations, whilst as the result of rigid '

control, substantial savings were made in some items of expenditure. Further expenditure included £470,000 for the purchase of .exchange under the Banks Indemnity Act, which was not allowed for when the Budget was prepared. That is to say, exchange to the amount of £1,910,000 in excess of the actual requirements for the year ended March 31 last was purchased from the banks.

“ Reviewing the budgetary position for the year, it will be recollected that before the year opened it was estimated that we would be faced with a prospective deficit of no less than £8,300,000 and drastic steps were taken -syith a view to bringing the amount down to not more than £2,000,000, as it was thought it would not be possible to do more than this. Some improvement in the revenue prospects, however, lessened the gap to be bridged and with £2,355,000 saved by economies and adjustments and £2,500,000 from reserves, the initial objective would have been achieved. Again, as the result of the personal representations in London of Mr Downie Stewart, Britain extended a helping hand by consenting to postpone for another year all, the payments due under our funded war' debt.

“The net result then was that,, allowing for the Supplementary Estimates and for contingencies, the Budget programme provided for an; estimated deficit of about £1,000,000. In a statement made in January I indicated that the final deficit would not exceed £700,000, but the position continued improving right up to the close of the year so that the additional revenue received, plus a substantial saving in expenditure, has been sufficient to bridge the remaining gap, notwithstanding the fact that the Budget had to be charged with additional expenditure for exchange. “ Considering the serious position that had to be faced when the year opened I think it will be generally conceded,” the Minister concluded,. “ that the result for the year is very satisfactory. The final audited accounts will be published in May in the usual way.”