COMMONWEALTH FINANCES

Hawke's Bay Herald-Tribune, Issue 167, 2 August 1937, Page 6

COMMONWEALTH FINANCES

The Cornmonwealth Budget for the year ended June 30 is a surplus of £1,276,637. This result was achieved after expenditure of £81.8 millions which was nearly £2.2 millions more than in the previous year, an increase which is more than made up by the growth of defence expenditure from revenue and invalid and old age pensions. The surplus has been achieved not by curtailment of expenditure but by a general increase in revenue, and the increases universally reflect prosperity. The prospects for the new year are more satisfactory than for some years past (comments the Canberra Times). The f'actors that made revenue exceed estijpates will continue to be in evidence in the current financial year, and probably the revenue result may he better, thus paving the way to minor tax reduction. It is on the expenditure side, however, that concem exists. The Pensions Bill is wori*ying the Government, but this should have been seen when the increase was made in pensions last year before any conclusion could be reached concerning a national pensions scheme. Defence will no doubt call for further heavy expenditure in the current term, but this should not be at the expense of other public works. There is very considerable room for increased expenditure on certain items of health and education, and having regard to their national importance, special attention should be given to these headings in framing the budget. In view of the extent to which primary producers are now ahle to look after themselves, as witness the increase in butter and cheese prices, there is room for some clipping of assistance to primary prodqeers ip f»your o| ftggigtagge to ti* nation as a wholt,