The Domnion THURSDAY, AUGUST 7, 1913. THE BUDGET.

Dominion, Volume 6, Issue 1822, 7 August 1913, Page 6

The Domnion THURSDAY, AUGUST 7, 1913. THE BUDGET.

Certainly the most striking feature of the Budget presented to Parliament by the Minister fpr Finance, the Hon. James Allen, lastevening is the manner in which tho financial position of the country is disclosed in all its bearings. It is a masterpiece of'lucidity and frankness. • Those who have been accustomed to look in. the Financial Statement for lengthy but vague dissertations _ on - policy proposals will not derive much satisfaction from Mr. Allen's Budget. But those who really wish to learn something about the country's financial position, which after, all it is the true purpose of the Financial Statement to supply, will be more enlightened probably by a perusal of this year's Budget than they have ever been at any tjme during the past twenty odd years. Concerning the general questions of policy outlined in the Budget, it is not possible to make more than passing comment on the present occasion. As is usual, there is little indication ns to the exact nature of many of the proposals to be submitted to Parliament for consideration, but the programme outlined is far too great- to hope to dispose of in one session. Some details are given regarding the Government's intentions with respect to extending the benefits under the old age pensions scheme, but the Bills relating to these are already before Parliament. A definite step is promised in the direction of bettering the lot of the underpaid school teachers, and the proposals of the Government respecting now ofiiccs for the High Commissioner in London; improvement in immigration methods; the position with regard to the water-power scheme at Lake Coleridge, and other matters are stated.. There is a hint, too, of •tho .Una to bs taksn in amending the

Conciliation and Arbitration Act. But on such questions as electoral reform, local government reform, naval policy, and Customs revision, the nature of the Government's proposals are left for disclos- ■ ui;e at a later date. This of course was only to be expected so far as the tariff changes are concerned. These can only be disclosed when the Government brings down its complete scheme of tariff amendment, and for the present this is delayed owing to the reciprocity agreement with Australia being held up temporarily at least, owing to the change of Government there. So also there is unavoidable delay associated with the declaration of the policy of the Government in the matter of naval defence. Ministers are not in a position to declare their views until certain questions of detail now the subject of correspondence, with the Home, authorities are settled. There is, however, a pretty broad hint given on this point: "So soon as these details are settled," the Budget reads, "the Government will submit to Parliament a policy which will recognise to the full the necessity for one control for Imperial purposes, will throw upon the New Zealand Parliament a more direct responsibility for naval defence, and will give the people of this Dominion a more definite interest in defence matters and afford them a better opportunity for service." Reading between the' lines it is not difficult to conjure uji a situation under which New Zealand might maintain.a limited number of war vessels for which she would be responsible, but which in time of emergency would be at the disposal of the Imperial Naval authorities. Howover, the exact nature of the Government's proposals will no doubt be made known ere long.

Turning now to tho financial side of tho Budget, the Minister for Finanoo deserves the heartiest congratulations on the manner in which ho has presented the country's financial -position. It has required some courage to tackle the task in the bold and outspoken fashion in which he has dealt with the various balances and liabilities at the different periods immediately preceding the Massey Government's advent to office and sincc; but the result is an illuminating evidence of the progress made during the past twelve months along tho path of sound finance. It is not necessary here to commcnt on the year's working under the Consolidated Fund. We did this some weeks ago, when the figures for the year's operations were first disclosed. It is sufficient to rccall that both the revenue and the expenditure showed substantial increases, and that at the end of the year there was a surplus of £709,000. The most interesting feature of Mr. Allen's analysis of the country's position is, as already indicated, his comparison of the state of the various funds on June 30, 1912, just before the Government came into office, with their condition on March 31, nine months later; and again on June 30 of this year, after twelve months' control by the Reform Government. The Minister for Finance has prepared a set of tables showing tho total balance to credit of the various funds together with the loan money the funds were to receive, and alongside these credits has shown tho liabilities and commitments. The result disclosed is that at June 30 of last year the total liabilities and commitments exceeded tho credits available by £879,896. A portion of the liabilities, notably part of the vote of £334,520 on account of the Midland Eailway contract, did not require to be fully met during the year, and if that portion of the total amounting to £325,870 is excluded the 'Aortage was £554,026, or to put it' in round figures half a million. Mit. Allen bluntly labeli this as a deficit, although he points out that there were at the time unexhausted authorities to borrow amounting to over £4,000,000. This was the position of the finances when the Government took office. Tho significant feature of the tables is to be found in the fact that nine months later, instead of this shortage of half a million, there was a credit balapce of over li million and three-quarters, and tho unexhausted authorities to borrow were even greater than at the 30th June preceding. The position, however, will be more readily grasped if we .reproduce tho tables from the Bud l 1 get, omitting tho item of £325,870 on account of the Midland Railway contract, so as to simplify the position and leave no room for complaint from our friends on tho Opposition benches. The figures are as follow: ■ FINANCIAL POSITION. As at Juno 30, 1912. J> \g Balance 1,864,841 — Loan money to receive 724,053 — 2,583,891 LiabilitiesGeneral services 2,184,097 — State Guaranteed Advances commitments 950,173 ■ — 3,134,270 Deficit - 545,376 Unexhausted authorities to borrow amounted to ,£4,053,823. As at March 31, 1913. £ £ Balance 1,875,249 — Loan money to receive 1,825,873 — 3,701,122 LiabilitiesGeneral services 1,239,597 — State Guaranteed Advances commitments 662,014 — 1,901,611 Credit .. - 1,799,511 Unexhausted authorities to borrow amounted to .64,112,970. As at June 30, 1913. £ £ Balance 2,580,865 — Loan money to receive 1,060,474 — 3,611,339 LiabilitiesGeneral services 2,063,855 — State Guaranteed Advances commitments 541,329 — 2,605,184 Credit - 1,033,155 These tables are of very great interest, and indicate clearly the progress mrtde in the direction of placing the finances 'of the country on a sounder and more stable footing. The liabilities and commitments it will be noted have been brought well in hand, and are more than covered by the balances and loan money receivable without having to depend on unexhausted powers of borrowing which it is not_ always.possible to exercise when desired.