Budget Secrets Are Still Secrets

Hawke's Bay Herald-Tribune, Volume 81, Issue 4, 28 September 1937, Page 4

Budget Secrets Are Still Secrets

Our Qwn Correspondent.)

HIGHER TAXATI0N? Some Qiiarters Expect an Increase H0USING, PUBLIC WORKS

(From

WELLINGTON, Last NightExtraordinary precautions have heen taken by the Government this year to prevent any advance. information from leaking out about their financial plans, and the Budget to be presented by the Minister of Finance 011 Tuesday nigut is, probably for the first time, reaUy ft "husii-hush" document. Last year a Wellington psper was able to forecast the main provisions pf the Budget with complete accuracy, and not only to forecast them but to make the statements with absolute knowledge. To prevent any recurrence of this there have been extra efforts this year. Even the personal staff of the Minister of Finance has not seen the document. In the Treasury the work of preparation has been Bplit up among a number of officers, each offieer being made responsible for a defined field, so that if, t-Jtxere is any leakage of information there the person responsible will be imjnediately revealed. The coxnmunxcation of details of the Budget to the members of Cabinet has been guarded and *mall. The only persons jvho know the whole plan up to now are the Prime Minister and the Minister of Finance. General opinion - here is that there is not likely to be any reduetion 111 taxation ] some hold that it is likely to be increased. Those who tafee this view point to the increased espenditure which the Government will make and also to the now well-defiixed policy of Mr. Nash, which might be sumrned up as "Sociaham by tasation."" However, it is not generally held that there will 'be any marked taxation nses in view of tlxe buoyant revenue which exists at tlxe present time and the fact that a good year is confidently anticipated for 1938. Taxation is more likely to be redistributed, though in a linuted way; that is to say, there will be higher taxes for the Iiigher iucomes. Forecasts are: — More money for Pubhc "Works— a total set at abouf £6,000, (X)0 by some observers. A delenco plau which may not bo seen in all its iuiplications until the Defence Estimates conxe down, but which wiil cost as much as £4,000,000 or £5,000,000, Tlxe contixxuance of the policy qf npt bo'rrowing abroad.." An attempt to stop taxation leaks, The Government apparently is determined not to act to relieve the embaTrassnxents of local bodies which cannot get money at 3-^ per cent. Mr. Savage's recent warning to the banks has been constrqed as meaxxing that thev should take over this task. There will be several more millions for housixxg, it is expected. l'ossibly some State industries will be started to relieve unenxployment and make the country more self-sufficient. The Government is vigorous in its assertion that it means to exploit New Zealand's natural resources for New Zealand's benefit.