HALF MILLION DEFICIT

Sun (Auckland), Volume III, Issue 640, 17 April 1929, Page 10

HALF MILLION DEFICIT

STATE REVENUE SHOWS BIG DROP CUSTOMS AND INCOME-TAX (From Our Resident Reporter) WELLINGTON, To-day. A deficit of over half a million is predicted by the Prime Minister, Sir Joseph Ward. PRELIMINARY statement of the results for the last financial year of transactions in the ordinary revenue account of the Consolidated Fund was made by the Prime Minister this evening at the Wellington Chamber of Commerce dinner. Sir Joseph Ward said that preliminary figures of the position at the end of the financial year. March 31, indicate a deficit of approximately £550,000. The deficit was due mainly to shortages in the yield of customs and income taxation, these being £302.000 and £89,000 respectively below the estimates. With regard to expenditure, a saving in departmental votes had been effected since he came into office. Under special Acts, however, an item of £156,000 on account of advance interest payments on the loan issued in January had to be met. Expenditure for old age, widows and soldiers’ pensions had also exceeded the estimates. Discussing the position of the Dominion generally, the Prime Minister said the latest returns showed the banking position to be very sound and that ample credit was available for financing trade. Quoting the trade returns for the last 12 months, Sir Joseph remarked that New Zealand’s trade recoverV had been remarkable. The British Empire took approximately 84 per cent, and foreign countries 16 per cent, of the Dominion’s exports. Ol the imports the British Empire supplied 68 per cent, and foreign countries 32 per cent. He predicted a period of returning prosperity in which all producers were likely to share. He thought New Zealand had reached a period of stability and looked forward to the future with confidence.