CO129-623-8 Estimates of Expenditure- includes a report for the year ending March 1951 1-12-1949 - 31-3-1951 — Page 3

that if the budgetting

Govenor

can succeed in

on

Q

conservative basis and

3

realising in practice greater

practice greater revennes tha

he has budgetted for he has made some contribution towards checking inflations Against this however there is

which is

the danger,

Cause

strong

recognised by the Governor (see para 6 of (1) opporite) that the fact . If a large sumplus may presume to meet deprits four suplus "funds, which if given way to to some extent negative the

dis inflationary effect of the sumplus.

2.

to would

The Govenor however intends

resist

expects

any attempt to meet deficits (he

ome

of $7 millions on

the public works programme) from the '45/50 Surplus and he moreover proposes that the estimated deprit of $7 million for 50/51,

Conservative estimate of

should be met

based on

the

revenne,

met by increasing

the standard

rate of Earnings and

Profits tax from 10% to 15%. This no

doubt has been proposed beaming in

muid om views

ал

expressed

at (16)

on _/44, but taken all in all the policy which the Governor proposes to pursue seems to me

Com ageons

quilt

one in view of the

a

cunofficial opposition he may expect.