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Hokitika Guardian, 25 July 1930, Page 4

The Financial Statement delivered by t(ie Hon, G. W. Forbes, Prime Minister and Minister of Finance, discloses another fiscal adjustments, but under different circumstances to that referred to in the preceding article. Mr Forties has been again as good as his promise—he has balanced his budget—on paper. From the former intercourse between Mr Forbes and the public, a , frank statement might be expected, and the Budget delivered to nu expectant House last night was all that, i Also it was a clear and concise statement of the position, with no suggestion of recklessness, It was expected that further taxation would he imposed and it was just a question of where the shoe was going to pinch. Mr Forties had to make up over three millions of leeway expected for the current financial year. In the customs taxation brought down two nights prevously, it provided for about half the expected deficit, and the making up of the other half was revealed in last night’s deelar- j ation of policy. To produce over a million and half of increased revenue, stamps and death duties were increase ed ; there is a film hire tax on sound pictures; land and marine taxes were both adjusted and added to ; there is a hank note increase of duty, likewise an extra turn of the screw on totalisator turnover, equal to per cent; insurance companies etc., also must find more money for State management. ' The Statement bore evidence of a good | combing ,but perhaps on the whole, the j increases touched many classes of revenue, which it might be expected would hear the burden with the least inconvenience.. Mr Forbes’ review of ' the position is very complete, and he indicates what is being done in respect to curtailing expenditure. It is certainly substantial Payers of petrol j tax will be interested to note that some of their new money will go back j to the Consolidated Fund which is in a very depleted state. The Government is not going to trnnsifer more funds to the Highways Board, and is j also going to charge the Board five per j cent, foi' money it has had already, In addition, the Government subisidy on rates is to be paid out of. til© High= ways fund! This is an ingenious way of saving the public funds upwards of ( 'a quarter of'a million, the'explanation being that the subsidy is to assist roading, and the money should come out of the road funds. Actually, therefore,

the increase in the petrol tax will be largely ear-marked for the Consolidated Fund, and the direct share to the local bodies will be small and when spread over the great number of loeal bodies, will be very small indeed. To balance his Budget, Mr Forbes estimates his revenue at £25,120,090. Cautiously he estimates tlie expenditure at €24,874,000. This supplies a modest surplus off £240,000, and this is earmarked for the supplementary estimates and contingencies, The Hon, Minister in Ill’s review of the national position, reminds the people that the financial situation of New Zealand is governed by the world’s markets for the primary produce of the country, the sale of which overseas, brings in the wealth which creates the internal prosperity. For marketings and successful tradings the Government cannot be blamed, but as the directing authorities of tlie country’s fortunes, the Government is responsible for directing the development and expansion of the Dommion. If tlie usual sources of income are not available, other means oif adjustment must be attempted to achieve results which will give the country a fair chance to progress. Mr Forbes has made n gallant attempt in that direction. All that he attempts will not he acceptable, but there can be no doubt as to tbe goal be nims at and to the desire to succeed, His plain and unvarnished statement will help the public to understand the national situation better, and assist to reconcile tbe people to the readjustment of taxntion which is now inevitable,