Tonga’S Deficit
p. 22 · Read in the full issue
Accounts for Half-year Show Loss of £4000.
THE accounts for the Kingdom of Tonga for the half-year ended De cember 31 last show that the little country has been experiencing the full blast of the economic storm; but that, on the whole, it is not doing badly.
Figures are:
The revenue estimated for the cur rent year was £71,315, or at the rate of £35,600 per half year; so that the rev enue received is some £7,500 less than expectations. Expenditure was esti mated at £69,045 for the year, or a little less than £35,000 for the six months; and the actual expenditure is £3,000 under that. It is apparent, therefore, that the Tongan administration has done its part well. The gap of £4,000 between revenue and expenditure dur ing the six months is due to the ghastly falling-off in revenue—particularly in native taxes (down £4,263) and customs (down £5,819). The decrease in customs receipts is simply the result of world wide trade paralysis. The taxation shrinkage is not explained, but no doubt is due to sheer inability to pay.
However, the Kingdom’s financial position is very strong. It has assets —mostly in cash and Government bonds —of £167,866, and its liabilities are only about £31,000; so that its actual reserve is not less than £135,000.
The reserve was nearer £150,000, a year or two ago: recurring deficits have an unpleasant way of boring into reserves.
But Tonga need not worry. The finances are in capable hands; the ex penditure is being rigidly supervised; there are (judging by letters we re ceive) a remarkable number of fierce critics in Nukualofa, to keep the ad ministration “up to it”; and the worst is past. The world improvement will scarcely be noticed in the first half of 1932 —but it is definitely on the way.
Revenue.
Half Year Half Year to 31/12/31. to 31/12/30. £ £ Native Taxes 5,913 10,177 Customs 10,608 16,427 Port Dues 1,215 1,525 Licenses, etc 2,147 3,221 Fees of Court, etc. . . 2,704 5,305 Post Office 456 617 Rents and Interest . . 4,770 4,550 Various 156 275 Total for 6 months 27,973 42,101
Expenditure.
(Principal items only.) £ £ Royal Establishment 2,025 2,615 Legislature 748 732 Premier’s Dept. 2,046 1,841 Customs and P.O. . . 1,891 2,150 Survey Dept 1,173 1,206 Justice Dept 1,751 1.634 Police Dept 2,165 2,567 Education Dept. 3,087 3,218 Pensions 755 891 Printing Office ... 617 1,039 Vessels 1,423 3,332 Medical Dept. 4,524 3,630 Agriculture 673 892 Telegraphs, telephones 961 1,129 Works Dept 1,158 1,178 Public Works, annual 2,160 2,284 Public Works, extr’y. 1,296 4,120 Total for 6 months 32,012 39.113 Excess of expenditure over revenue £4,039