CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 321

Enclosure Nb.7.

I rise by Your Excellency's command to move the

first reading of a Bill intituled "An Ordinance to apply a sum not exceeding $26,327,343 to the Public Service of the

year 1938. ".

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My task of introeing and explaining the Estimates which are now before you has been much lightened by the provision of the three memoranda which are in your hands and I need not at this stage wear you with a repetition of the

numerous details which are fully set out in these documents.

As you will see, the budget has again been

prepared in anticipation of a deficit. In normal circum-

stances such a deficit, large as it appears at first sight, need not be taken very seriously. Estimates of revenue

are naturally on a conservative basis. Just as naturally,

estimates of expenditure are prepared on the assumption that

it will not be necessary to exceed then. It is quite

legitimate to proceed on the assumption that most of the very numerous subheads of expenditure will at the end of the year

prove to be more or less unler spent an that, barring co

accidents, some at least of the heads of revenue will he

found to have exceeded the estimate. 1936, and, there is

good reason to hope, 1937, are cases in point. But, in the

present unhappy state of the world, who can venture to

prophesy what will happen in 1938? We can only carry on

and hope that we may yet escape the worst.

With such uncertainty ahead the Government feel

that it will be unwise to enter upon any large commitments

which can reasonably be postponed, and that, if by any means

it can be avoided, no additional taxation should be imposed.

As far as can be foreseen, although I admit that

is not at the moment very far ahead it will not be

necessary to look for new sources of revenue in 1938. At

the same time it is not so easy, as is sometimes glibly

suggested, to cut down expenditure in times of depression