6-
possibility of having to face a deficit of $2,299,096
at the close of the coming year.
Not too favourable
a position admittedly, but in all the circumstances
not one that need occasion alarm. It will be
remembered that for the current year the estimated
deficit amounted to approximately four and a half
millions.
Appendix A. attached to the Treasurer's
Memorandum on Revenue shows that our surplus balance
at the end of the current year is estimated at
$5,425,351.
While our balances can stand the strain
of the estimated deficit for 1931, they are being
reduced to too low a figure. It is hoped however
that as a result of the Retrenchment Commission's
work and of a possible revival in trade of which there
are already slight signs, the deficit next year may
prove less than is shown in the Estimates. It will
be noted that the total expenditure for 1931 exceeds
the revised estimate for the current year by a sum of
$1,484,353 in spite of the drastic cuts to which
reference will be made later.
The value of these
cuts is more than counter-balanced by the lower value of the dollar (1/4d. as against 1/10d.) and the increase
of some $900,000 in the Military Contribution.
It
should
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