A STRONG FINANCE

Dominion, Volume 11, Issue 146, 9 March 1918, Page 6

A STRONG FINANCE

' With one month of the financial year yet to go, the Minister of Finance is able to show the Dominion's finances to be in. a remarkably strong position. The net increase in revenue for the eleven monthls of over two and a half millions is almost entirely due to the new land and income taxes imposed last year, the income tax alono being responsible for nearly two millions of the additional revenue.. With the March returns yet to come it may confidently bo expected that land and income taxation between them will show an increase of at_ least mree •millions as compared with the revenue from the same sources last year. The National ■ Government, it will be seen, has drawn almost ■entirely..on the wealthy and the well-to-,do for the additional revenue it has required to meet tho heavy charges arising out of war expenditure.' Sir Joseph Ward 'makes the cheering announcement that it will not be necessary to increase taxation during the coming year. This indeed seems very clan from the figures themselves, for the •net increase in expenditure is a little more than one-fourth. of the increase in revenue.. The Governmeht.is.to. be congratulated on this fact, for while expenditure such as that due to the mounting annual charge for interest, and sinking •fund oii our war loans cannot be avoided, there have been economics practised in directions where opportunity occurred. Last year the .FiNANcp,MiM;BTE'ij'.\vas'"in; the happy position of boing able to announce a surplus of revenue over expenditure of some four and a quarter -millions sterling. There is ■'- every indication'' that- the surplus for the current year will exceed even that huge sum and will probably run into the region of six millions, or practically equal to half the total of New Zealand's prewar revenue. l This is indeed a staggering "prospect; ' and but for the uncertainty which exists regarding shipping facilities for the carriage of our produce overseas would certainly appear to warrant lessening of the burden of taxation. Under existing conditions, however, _ the National Government is wise in erring on the side of caution.; In building up these huge reserves out of-revenue it is making a_provision for.the future which willbe a safeguard against unexpected contingencies or which may serve to ease tho financial strain when conditions may be'less favourable than they are at present.