GRAVE CONCERN

Evening Post, Volume CXII, Issue 80, 1 October 1931, Page 14

GRAVE CONCERN

FINANCIAL OUTLOOK

DIFFICULT BUDGETING

!THE PEEICIT PKOSPECT

It is understood that the continued adverse state of the Dominion's finances is causing the now Coalition Cabinet the gravest concern, and that even while efforts are being made to restore tho Budgetary position for tho current financial year tho position is becoming steadily worse as tho result of external factors, over which the Government eau have no control. Cabinet was in conference) again until a 1 late hour last night, when further consultation, took place with departmental officers. It is gathered that the latest figured furnished by the Treasury reveal: that the national accounts are down to a. greater extent than it was previously anticipated they would be, and that the awkwardness of the situation is accentuated by the uncertain exchange position created by the departure of Great Britain from the gold •tandard. The Budget presented to the House of Eeprosentatives by the Unit•d Government two months ago revealed a prospective revenue shortage of £.6,850,000, but it is understood that present indications are that that deficit will bo increased to tho extent of up to another million. A SHOCK COMING.. There is a- growing realisation in politi6al circles that whatever justification was revealed before the InterParty Economic Committee for a temporary union of party forces in an endeavour to stem the receding tide in the national accounts, the advisability of the step is now definitely confirmed. It is said that tho steps Cabinet ■wiir be obliged to take in its endeavour .to balance the Budget will cause something of a shock when, the pro-posals-are placed before the House by the? Minister of Finance next week. ' Questioned to-day a3 to the latest aspect of the financial position, the Prime Minister (the Eight Hon. G. W. •Forbes) stated that there was&o denying that it was difficult. The uncertainty! was added to because of the difficulty in foreseeing- to what extent the State trading departments will toe affected by the prevailing conditions. Mr. Forbes said he could make no definite pronouncement at the moment as to the .financial position, but that it ■would be the subject of detailed information to be given to Parliament next week. „_«.__—«——