WELLINGTON TOPICS.

Hokitika Guardian, 15 May 1922, Page 2

WELLINGTON TOPICS.

THE NATIONAL BALANCE SHEET.

A SMALL DEFICIT. SPECIAL TO GUARDIAN. WELLINGTON, May 12 The National balance sheet the Prime -Minister submitted to bis audience on Wednesday evening, and through his audience to the Dominion at large, while emphasising the need for the strictest economy in every department of public expenditure was not without some indications of improving conditions. The figures revealed that the expenditure for the financial year closed on March .‘ll last (£28,406,838) ; had exceeded the revenue £28,12/,007) bv £339,831. Mr Massey’s political opponents are quite justified in describing this balance on the wrong, side of the ledger as a deficit, the first the Dominion has experienced for many a long year, but his political friends ■ prefer the more euphonious term an : excess of expenditure. The Minister i himself adjusts the matter by drawing upon his accumulated balances from ! • previous years and so reaches the equalibrium dear to the heart of every Treasurer. The process, of course, is a perfectly legitimate one and. to do Mr Massey and the Treasury officers justice, they have presented the facts quite dearly and with commendable candour. THE FIGURES. The striking figures on the revenue side of the account are the enormous decline in the sums obtained front Customs duties and income tax. The former, a reaction from the extravagant importations of previous years, was inevitable, and is not unsatisfactory so far as it indicates the practice of reasonable economy on the part of the public. The income tax revenue was affected to some extent by the concession made for prompt payment and to a much larger extent hv the decreased incomes of numbers of people. But the results of investigations that are being made suggest that an increasing number of people who vshould be contributing towards the public revenue through this channel are escaping the attention of the taxing officers. Mr. Massey, though frankly admitting that excessive taxation is hampering trade and enterprise, holds out little hope of early relief. Any movement in this direction, he let it he understood, must lie preceded by a substantial reduction'in expenditure and the economies so effected are not vet. verv impressive. THE OUTLOOK.

It is evident, however, even after every bright feature of the figures has been picked out and magnified that the difficulties before Mr Massey are colossal. The “Dominion,” the Government’s most kindly critics, does not attempt to disguise this fad. "The need for stringent national economy,” it says, "is very plainly emphasised in the details of revenue and expenditure for 1921-22. Although the position in regard to Customs revenue is quite exceptional, it remains a fact of serious significance that last year's expenditure exceeded revenue. Taking account a]so of the fact that the country is ioaded with a burden of taxation wliitjh of necessity hampers the recovery, iiot to speak of the expansion, of trade and industry*, it is self-evident that nothing but drastic economies will clenr the financial outlook. The only sound course for the Government to pursue is to continue the policy laid down last year of caution and economy.” The qlli-.litly of tile caution and economy of the Government will he revealed during the approaching session of Parlia inent.