8.—6.

exchange already referred to, was kept down to £6,631,617, thus providing a saving of £280,000 in reduction of the deficit. This result is particularly satisfactory m view of the fact that the estimates for the year were pared down following the work of the 1931 Economy Committee. Practically every vote contributed towards the saving, which resulted from a multitude of small savings following a stringent control over every detail of expenditure. SUMMARY OF YEAR'S OPERATIONS. The year's operations may be summarized as follows : — Expenditure. £ £ Debt services .. .. •• •• •• 10,511,989 Pensions and family allowances .. .. •• 3,075,415 Motor taxation transferred to Main Highways Account and local bodies . . .. • • 1,807, 666 Unemployment subsidies .. • ■ ■ ■ U 130,231 Hospital subsidies- .. .. •• 642,809 Under other special Acts .. . • • • 686,352 Total permanent appropriations . . . . • • 17, 854,462 Annual votes .. . . • • • • . . 6, 631,617 Exchange .. . • • • • • • • 374, 473 Total net expenditure .. . ■ • • • • 24, 860,552 Revenue. Taxation — Direct .. .. •• •• •• 8,200,479 Indirect .. .. •• •• 7,989,488 16,189,967 Interest .. .. • • • • • • 2,868,138 Other receipts .. •• •• •• 2,166,803 From reserves .. •• •• •• 1,494,825 Total revenue . . .. . • • • • • 22,719,733 Deficit .. .. • • • • £2,140,819 The deficit of 1931 was automatically met out of the balance carried forward in the Consolidated Fund, and that was the end of it. This year we are not so fortunate. The balance carried forward in the accounts on the Ist April, 1931, was only £278,601, so that to the extent of £1,862,218 the 1932 deficit is represented in the outstanding Treasury bills. This means that sooner or later that deficit has to be made good either out of reserves or out of future revenue. TREASURY BILLS. Owing to the depletion of the working cash balances in the Consolidated Fund and°tbe shortage of revenue, also in order to finance remittances to London under the exchange-pool arrangements, it was found necessary or advantageous to make considerable use of Treasury bills during the year. A reference to the published accounts will show that revenue bills to the amount of £15,845,000 were issued. To the extent of £4,485,000, however, such issues included renewals of bills issued in the first instance usually for a period of three months only. The net amount involved was thus £11,360,000, of which £3,425,000 was issued m London at rates varying between 2 and 2f per cent, early in the year, but rising to 6j per cent, following the departure from the gold standard. All these London bills were redeemed.

Summary of year's operations.

Treasury bills,

6