8.—5.

SUMMARY OP THE PROSPECTIVE POSITION. From the foregoing it is clear that unless far-reaching adjustments are made to increase the revenue and decrease expenditure the results for 1932-33 will show a much more serious deficit than for the year just finished. This can be seen from a tabulation of the estimates set forth above as follows — £ Estimated revenue for 1931-32 .. .. . . 22,600,000 Deduct forecasted decreases for 1932-33, as follows:— £ Customs .. .. .. .. 900,000 Income-tax . . , . . . 900,000 Land-tax . . . . . . . . 40,000 Motor-vehicles—.Duties and licenses . . 210,000 Stamp and death duties .. .. 290,000 Railway interest . . . . . . 200,000 Other interest . . . . . . 200,000 Post and Telegraph profits .. 590,000 Reserves .. .. . . 1,290,000 Other items (net) . . . . . . 160,000 4,780,000 Estimated revenue for 1932-33 .. .. £17,820,000 £ Estimated expenditure for 1931-32 .. .. .. 25,120,000 But this expenditure would in the ordinary course be increased as follows for 1932-33£ Debt charges . . . . .. 500,000 Unemployment subsidies .. , . 350,000 Pensions . . . . . . . . 100,000 Subsidies to local authorities . . 125,000 Hospital subsidies . . . . . . 55,000 Exchange . . . . . . 130,000 1,260,000 Less savings— £ Motor-taxation . . . . 210,000 Other items .. .. 50,000 260,000 1,000,000 Estimated expenditure for 1932-33 .. £26,120,000 Prospective result for 1932-33 — £ Expenditure .. .. 26., 120,000 Revenue ~ .. .. 17,820,000 Shortage .. .. £8,300,000 Honourable members will, I think, agree that the prospective budgetary position is a very serious one, especially when it is remembered that taxation was greatly increased, reserves heavily drawn upon, and resources generally strained in the effort to balance last year's Budget. To meet a shortage of much the same magnitude this financial year is a much more formidable problem, and,having regard to the limited taxable capacity that remains, the fact must be faced that the bridging of the gap in the finances must be largely accomplished by means of reductions in expenditure. Millions, however, cannot be saved without very drastic economies, involving serious curtailment, or, in some cases, even the abolition of various grants,

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