CO129-568-4 Estimates 1939 8-10-1938 - 6-7-1939 — Page 25

25

But this figure for Actual Expenditure includes

$1,203,616 representing building loans and

unallocated stores outstanding on the 31st December,

1938, charged to Expenditure under the new accounting

system, and the exceptional payment of $1,000,000

on account of 1938 military contribution.

The actual deficit for 1938 thus becomes

$440,043, and the surplus funds are therefore

reduced to $13,562,235. The 1939 approved estimates

allow for a deficit of $1,659,898, but since the

amount payable in military expenditure has now been

reduced the estimated deficit for 1939 is more

likely to be $650,000, thus making the estimated

surplus at the end of 1939 $12,900,000. Since the

corresponding figure on the showing of the 1939

approved estimates is $11,867,025, the Colonial

Government is expected to be better off to the

extent of over one million dollars.

The weekly reports on the situation have

indeed the

shown that revenue is not declining:

approximate revenue for the first six months of 1939

was equal to 111 per cent. of revenue for a

corresponding period in 1938. On these

calculations the Governor thinks it safe to assume

that the approved estimate of revenue for 1939

($35,257,621) will be realised, if not surpassed.

He does not think this is the time to add further

to existing surpluses, since they are already

substantially above the former standard of ten

million dollars, and submits that if provision is

needed to meet difficult times ahead, taxation

should