THE FINANCIAL SITUATION.

Patea Mail, 2 September 1880, Page 3

THE FINANCIAL SITUATION.

The Colonial Treasurer has placed before Parliament a statement as to the present financial position of the colony, assuming the Government proposals, as now revised, to be carried out, and effect given to the reductions agreed upon by the House. The revenue is estimated at £3,240,000, as in the financial statement, but the estimated expenditure has been reduced from £3,473,700 to £3,254,723. The decrease has been effected as follows Reductions made in Committee of supply (L 167,470, less (15,150 for Audit and Agent-General departments, postponed), (152,320 ; ten per cent, on salaries, &c., for eight months, (6tf,666 ; total reductions, (218,036 — leaving the net expenditure as above, (3,254,723. But to this must be added the Supplementary Estimates, including the extra outlay in shape of compensation, &c., consequent on the reductions in salaries (75,750, making the total esti-

mated expenditure t3,330,473. Tliis would leave a dciicit of Z90,473, but as it is estimated that .11225,000 of the above total will not bo expended within the year, there should be an actual surplus of 41134,520 when the Treasury books arc closed on 31st March, 1881. But assuming the revenue and expenditure to continue at the same rate during the following financial year, 1881-2 there will be a deficiency on the 31st March 1882, of £111,002, because although the ten per cent, reduction (on salaries payable at 31st March, 1880), will be in force for tire whole 12 months instead of during only 8 months as in the current year, there will be additional interest and sinking fund payable, amounting to .£78,273, which leaves a prospective deficit of £111,902 at the end of next year. The object of these figures is of course to show that every penny of the proposed taxation will be absolutely required, and even if it is all collected, there will still remain a deficiency at the end of the financial year, 1881-2. — Post.