The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 5, 1927. THE BUDGET.

Hokitika Guardian, 5 August 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 5, 1927. THE BUDGET.

I Tiik Financial vStatenient this year was I pitched m a minor key—reflecting the times. The general stringency has discounted any tendency towards buoyancy, and the Minister of Finance adi dressed the House in a very modest II manner. While it was possible to balance the Budget oil the credit side with a surplus of £-387,1-12, 10 great | elation was possible because of the I .stringency ahead. The Estimates for ! the year now entered upon are cast | upon lines to -show a possible surplus of only £178,3-31 and tlii.s very modest sum i.s ear-marked already for the -supplementary estimates—a very much reduced provision than usual indeed. The Government has been endeavouring to set its finances in order by a close overhaul of expenditure in the various Departments, and the parliamentary votes proposed for the current year are based on the recommendations which have been submitted. Reductions and economies are being brought into force, but it is apparent they can not lie immediately effective because with the unemployment- so manifest in the centres, any general retrenchment scheme would assist only to still add to the demands with regard to unemployment. On that account it would appear extra expenditure has to he met pro tern in Departments which will disappear ultimately. To secure his finance the Minister is maintaining taxation at the same level as heretofore. Farmers and manufacturers clamouring for relief have their answer in the Budget statement- in bald words: “Further substantial reductions are not feasible until good progress is made in the re- 1 duetion of the dead-weight debt.’’ i

And the public debt i.s mounting stilll There was an increase of nearly seven millions in the debt during the past year, and the best comfort Afr Downie Stewart can offer is that the seven millions increase is four millions less than the eleven millions increase the previous year 1 Perhaps if the full story were told frankly the increase is but seven millions because more could not be borrowed! For which the taxpayers may be truly thankful. But there will be more borrowing in the future. Six millions or more will he sought again as is customary, and which apparently under the present administration it will be

necessary to raise. Money may not bo borrowed ill London for the State Advance-., and an appeal is to be made lor money in the Dominion to assist rural credits, but it is not clear Hint all that will be required will be forthcoming. This is a phase of Reform administration which has broken down badly—assistance to the men on the land, and the Government is hearing about it from different quarters. The position i.s a legacy from earlier Reform administration, and to that extent both the Prime Minister and the Minister of Finance are to be .sympathised with ill what is their job— to shoulder the burden left over by the previous administration. The Government. however, must hear the odium as well as the load, and it is regrettable that s-mothing more tangible is not offered as a means to mcef a situation which with the increasing public debt and spreading stagnation, is growing more and more palpable. It is all very well but not very comforting to assert that “the corner ha-' been turned’’ or “that there is a silver lining,’’ whim the country is still in difficult straits, manifested n.s it is on all sides. Willi a system of retrenchment in. operation practically, and taxation maintained, some effort is made to meet tho position in the first obvious way. hut the Financial Statement lacks ailv colouring to give assurance as to tho future, or any indication of a policy to create a healthy revival, which in itself would tend to lift the Dominion out of the slough of financial despondency. For that reason there is sure to he much critical discussion when the debate on the Budget begins in the House to-night.