CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 91

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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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