HOPEFUL FORECAST

Hokitika Guardian, 17 October 1933, Page 5

HOPEFUL FORECAST

DOMINION BUDGET IS EXPECTED ON THURSDAY.

(Per Ptess Association — Copyright.)

WELLINGTON, October 1G

New Zealand’s financial position will be revealed in Parliament this week with the presentation of the Budget, probably on Thursday. Last financial year ended with a small surplus, and by a programme of additional taxation and economy the Minister of Finance budgeted for a “manageable” deficit this year of £4,500,(X)0. Although it is too early yet to forecast the term s of the Financial Statement there'is every reason to believe that the deficiency will be represented by a figure below that, estimated by the Minister.

The full impact of inflated exchange is not likely to be felt this year, because the accumulated surpluses -in London will be taken over by the Central Bank and ike loss will not be disclosed until next- financial year.

Apart from the improvement in tfio general trading position the revival ot confidence and a more optimistic outlook such revenue producers as the sales tax are almost bound to yield a sum in excess of the Treasury Department’s estimate, and the proceeds from income tax, although not those from Customs, are likely to maintain the estimate. On the other side of the ledger expenditure has been kept well within bounds,

In short, the Budget should be able to re-emphasise the note of reserved optimism which permeated the Financial Statement of 1932, notwithstanding that until the exchange position is stabilised the probabilities of its sequels are banging over the heads of the people like the sword of Damocles.