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Wednesday, 9 July 1930

The loan expenditure of the Commonwealth and the States, which had averaged £43,000,000 for some years, was reduced last year to less than £30,000,000. In view of the general financial situation, the Loan Council decided that further drastic reductions were necessary in the loan expenditure for 1930-31. Appropriate reductions are accordingly being made in the loan programmes of the Commonwealth and of each State. The policy of the Loan Council is to confine its borrowing in the future almost wholly to the Australian market instead of relying, as in the past, mainly on the overseas market.

 

The estimated expenditure represents less than half the average annual Commonwealth loan expenditure for the four years 1925-26 to 1928-29.

Loan expenditure of the Commonwealth has now been reduced to a sum considerably less than the amount applied by the Commonwealth towards the redemption of its public debt. Thus, though we are continuing to provide considerable sums for revenue producing assets such as post office works and war service homes, the gross public debt is being definitely reduced each year.

As against loan expenditure of £4,127,000 estimated for the current year, the amount available for debt redemption will be £6,792,363.

The proposed loan expenditures in 1930-31 compare with the expenditure in 1928-29 and 1929-30 as follow:-

 

Works under the Migration Agreement are expected to absorb £800,000. This sum is included in the loan programmes of the States.







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