§ 44. Captain Fieldasked the Secretary of State for the Colonies what is the reason for the budget deficit in the Gold Coast; and what steps are being taken to increase taxation, especially of incomes in order to overcome this.
§ Mr. Rees-WilliamsEstimates for 1947–1948 provided for a surplus of revenue over expenditure (excluding development expenditure) of £450,000 after providing for appropriation from revenue of £1,000,000 to Supplementary Sinking Fund Reserve against loan repayments. Owing to the adoption of revised rates of salaries and wages, not provided for in the Estimates, additional expenditure of approximately £2,000,000 will be incurred. This sum includes payment of increased salaries and wages to Government employees, increased salaries to teachers in non-Government institutions and special non-recurrent grants to native authorities, town councils and Achimota College, to assist them in meeting the corresponding increase in rates of wages payable to their employees, pending adjustment of their finances to meet these additional commitments. Of the total of £2,000,000, approximately half is non-recurrent being in respect of arrears of wages and non-recurrent grants.
This expenditure would transform the estimated surplus of £450,000 into a deficit of some £1,500,000. Revenue is, however, expected considerably to exceed Estimates, and the deficit will be correspondingly reduced. The apparent deficit will, moreover, include payment of £1,000,000 to the Reserve mentioned above.
No increases in taxation are being introduced in the current financial year, which terminates on 31st March, 1948, and any deficit will be met from Reserves which stood at nearly £8,000,000 at 1st April, 1947. Increases in taxation for introduction in 1948–1949 budget are at present under consideration by representatives of the Finance Committee with a view to producing a balanced budget. No 73W decision has yet been reached as to proposals which will be laid before the Legislature, but the Acting Governor does not anticipate difficulty in raising the additional revenue required.