CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 319

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as shown in Appendix III or the printed estimates for 1934

was $13,309,801. Savings in expenditure, largely due to

the higher rate of exchange, had more than counterbalanced

the decrease in revenue and the Goverment's financial

position was consequently better than had been anticipated.

The estimated expenditure for the current year including

$100,000 in respect of the Government House and City Development Schene was $33,442,695 and the estimated

revenue $31,731,625. The rovised figures are Expenditure,

$30,893,000 and Revenue, $29,670,534. Irom these figures

it will be seen that it is anticipated that by the end of

this year the surplus balances will be reduced to $12,601,259

and that revenue will have fallen more than $2,000,000

below the estimate for 1934.

These two points have been the major factors in

the framing of the Budget for 1935; a third importent

factor has been the rate of exchange.

I will deal with the third factor first. The

rate adopted for 1932 was 1s. Od., for 1933 1s. 2d. and for

1s.Od.,

1934 1s.3d. representing a slow but fairly steady apprecia-

tion in the value of the local dollar. The Goverment has

adopted 1s.4d., an advance of 1d. over the rate for 1934,

in respect of next year. This may be considered by some

to be unduly conservative in view of the fact that the

dollar at present stands in the neighbourhood of 1s. 6d.

but Honourable Members will reacbber that it was only four

and a half months ago that the dollar, having gradually

appreciated to that figure, fell suddenly to 1s. 44d.

view of the fluctuations in the rate of the dollar which

In