THE BUDGET

Hokitika Guardian, 28 September 1932, Page 2

THE BUDGET

NO SURPRISES IN STORE. FRESH TAXATION UNNECESSARY WELLINGTON, September 26. There will be no surprises, welcome or unwelcome, in this year’s Budget, which the Rt. Hon. G. W. Forbes, as Acting-Minister for Finance, hopes to bring before: the House of Representatives next week. The statement made by the Hon. W. Downie ’Stewart on April 7th. last outlined the financial programme for the year, and -the Prime Minister stated definitely tonight that the Government had no intention of imposing fresh taxation, The Budget would, he said, bring tboApril statement xyo to date, but there would be no need for further stringent 1 readjustments, such as had been made during the previous 12 months.' . According to the statement made by Mr' Downie Stewart, ,the Governmentset out this year .to reduce the prospective. deficit of £8,300,000 to £2,000,000, which' was the shortage considered maniageabile by the Committee of Economists. The swings for the year wen? estimated in April to total £4,-' 100,000, and extra taxation, the last of which has now been imposed, £2,200,000. Asked whether the Government had been able to kteep the estimated deficit for the year down to £2,000,000, as predicted, Mr Forbes said it was possible to give an assurance that the shortage wouild not be greater than this amounts whether it could be reduced remained- to he seem.

LOAN CONVERSION. So .far as the future is. concerned, the; Government is likely to get welcome relief as a result of the negotiations now being conducted in London between Mr Downie ’Stewart and the British financial authorites. When .it was announced that Mr Down:e Stewart would go : to London, the Prime Minister said lie would investigate the possibility of securing the conversipn of New'-'Zealand; loans, mention being made of the short-dated loan of £s,* 030,C00 which matures in the next financial year. . Apart, from,'a • email loan falling due in 1934-35, there are no further loans maturing 1 in London until' 1938-39! It is understood- that ■there " is a good prospect of • the conversion;. of 'the £5,000,000,.. although at present ■no definite statement on ■this matter - can , hte madie.. •;

PUBLIC WORKS EXPENDITURE Since there were, some fears that ■ it. .'would not'' be possible to- make such; a 'heavy cut: in the expenditure, of Public Works 'Department to the Governmentproposed, the fact that .this Depart: ment’s spending null not substantially, exceed the. ' estimate will he welcome pews The -Diepariinent’s vote was. reduced, from. £6,082,000 in 1931-32 to £1,234,000 '.for the current ybal*, and it is learned that certainly no more than about £1,300,000 will .be required before Maroij 31sti next.