FRANCE’S HUGE DEFICIT

Poverty Bay Herald, Volume LV, Issue 17608, 26 October 1931, Page 5

FRANCE’S HUGE DEFICIT

IXPEOTS £52,000,000 LOSS MAY IMPOSE FRESH TAXATION PARIS, Sept. b. While interest has been concentrated clhiuig the last weeks in the budgetary .deficits of England and Germany, jt is iiow being brought to the attention of the French taxpayer that France's own. budget is likely to be in far greater deficit than is either customary or satisfactory. ' The last fiscal year ended on March 51 with a deficit of oyer £16,000,000. The current year, it is believed by such experts as Germain Martin, former Minister of the budget, and Professor Bertand Nogaro, that a further deficit of at least.' £20,000.000 must be expect-' eh In addition .the Young plan annuities will not be forthcoming. During the last few years surplus revenue basal ways been obtained from such a tax ns that- on .turnover, but it is now feared that this and other forms of taxation which depend on business activity will show considerable decline, and may fall far below estimates. Meanwhile, expenses have not been reduced. The social insurance act passf 1 last year wiH cost £4,000,000- there has been voted an increase in war pensions, and an increase in expenditures roads, school buildings, electrifica-. tsor hud telephones, none of which wps; pj-.opei'ly balanced when the budget was forecast Albert Petiti, analyzing the situation In the Journal do Desbats, estimates the deficit'fis likely to he nearly £.52,;OOO.QOO, which is very large on a total budget of just over £400,090,000. This cry of .alarm has been raised now, i&’bile next year’s budget is in preparation, ns a .warning to Parliament, .and to all parties that France cannot afford to repeat the experience; of 1926 or get into the same position as Germany and England. France’s exSendit.urc on the array, navy and air, efeuce -for 1930 totalled £80,000,000, without including .colonial defence ,or. .expenditures on permanent police and Republican guard forces.