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The approximate expenditure to the 31st May amounted to $11,048,000, $2,517,000 below the proportionate amount for the five months. The under-expenditure is due (a) to the rise in the dollar savings being shewn under Personal Emoluments, Pensions and Store Charges, and (b) to the fact that during the early part of the year expenditure is always very much less proportionately than later, especially on Public Works items. A deficit of nearly two million dollars has this year been budgetted for, which includes the final instalment of $500,000 due to the Admiralty for the surrender of the Naval Arsenal Yard and Kellet Island. This instalment has already been paid over and is included in the figures given above for total expenditure to the 31st May.
In these difficult times it is extremely hazardous to forecast the future. It is, however, apparent to me that the estimate of revenue for 1935 will not be maintained and that we shall be faced with a drop of about one million dollars. Exchange has such a large bearing on expenditure that any forecast is still more hazardous. If the dollar remains round about 2s. there will be large savings on the expenditure heads already referred to and this should counter- balance the drop in revenue. Whether the savings on exchange will go further than this and help to reduce the deficit of nearly two million dollars originally budgetted for is doubtful but still possible.
On the above assumptions I have every hope that the excess of assets over liabilities estimated when the 1935 budget was drawn up at $10,630,807 will be maintained on December 31st next.
THE COLONIAL SECRETARY seconded, and the Bill was read a first time.