GROWING DEFICIT.

Star (Christchurch), Volume XLIV, Issue 233, 1 October 1931, Page 14

GROWING DEFICIT.

Departments Faced with Need for Great Economies. MINISTER’S STATEMENT. Per Press Association. WELLINGTON. September 30. It would be cowardly if we knew the position was going to be so serious that we were unable to meet our financial obligations, and then by refusing to make economies made children bear a greater burden later on. This statement was made by the Minister of Education, the Hon R. Masters, who. in replying to a deputation, pleaded for national and individual thrift, and said that ever}' Minister of the Crown in the Coalition Government was faced with the immediate task of making great economies in every Department of State. “ In talking of economies, we have to face the country’s financial situation as we find it to-day,” he said. “ When the Prime Minister came to balance his Budget last year, he was faced with a deficit of £3,000,090. The Budget was balanced then, but at the end of the financial year there was a .shortage of £1,640,000 on top of the three millions. The position was reviewed in December last, when it was indicated by the Treasury that there was a deficit of £4,500,000. It was reviewed again in February, when it was found that there was a shortage of £5,500,000; and when the Prime Minister prepared his Budget he found that there was a deficit of £6,800,000.” The Inter-Party Committee had investigated the position, which was found to be so serious as to cause the two main political parties to coalesce for the time being to meet the very serious financial developments. “ I am not in a position to tell you to what figure this deficit has increased at the present day,” said Mr Masters. “ Expenditure in the Departments must come out of the Consolidated Revenue of the country, and not out of capital. If the money is not coming in. we cannot pay out.”