GOVERNMENT SPENDING

Ashburton Guardian, Volume 70, Issue 109, 21 February 1950, Page 4

GOVERNMENT SPENDING

REVIEW BY CABINET • SUB-COMMITTEE COMMITMENTS ALREADY IN SOME CASES (P.A.) WELLINGTON, Feb. 20. A Cabinet sub-committee is reviewing the expenditure of various State departments to obtain a complete picture of their needs and of various works which may be brought within the country’s financial resources. This was announced by the Prime Minister (Mr S. G. Holland) this evening. Mr Holland said that the country was committed to a Vast works programme, much of which had already been begun. Besides the investigation of public works projects, there was also the important question of public expenditure generally and the expansion of departments such as the Railway Department and the Post and Telegraph Department. Mr Holland said that in this financial year which would end on March 31 the country would spend £26,000,000 more than it raised in taxes and by borrowing. It was committed to this by the previous Government. In the last financial year £23,000,000 more than current resources had been spent. To bring spending within the country’s resources was not as simple as might appear. Uncompleted and continuing works which the country had been committed to in the past boro a direct relation to expenditure for the coming financial year.