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Hokitika Guardian, 28 July 1931, Page 4

The Prime Minister intimates that the Budget will be brought down probably this week. The presentation of the financial statement- is being awaited with great interest, as on the state of the national finances depends largely the prosperity of the- country, From what has been revealed already, the country is suffering from a great falling off of the national income, and not only must more money be found, but to help, also, in the balancing of the Budget, a further saving must be made in administrative costs. Some drastic economies will still have to be made to avoid the contingency of .drifting into'the state of affairs obtaining in Australia. Before additional taxation is put on, it is the duty of the Government., to curtail expenditure as far as possible-in relation to estimated revenue. The recourse to borrowing now is neither profitable nor desirable, and that easy means, of carrying on must be vetoed for, a prolonged period if the situation is to be helped materially. With the curtailment of the national income, and the drop in the earning power of the country due to the fall in the value of the produce exported overseas, radical measures must be adopted. Just what is proposed will be the important section of the Budget speech, and it will be seen how far the present Parliament 'will support the proposals. No doubt behind the mind of Mr Forbes in proposing, fusion was the desire to adopt a radical policy in the national interests, as a menus to bring about a recovery in the shortest time possible. The proposals for fusion have not come to pass, and, the Budget will be at the mercy of Reform, for if not accepted by that party- an adverse motion would have the support of Labour, and the Government would he defeated. This possibility throws an added responsibility on Reform ait the present juncture, and the envelopments following the presentation of the Budget will ■be most interesting. It will be -seen therefore that this week Parliament approaches the critical period’of the session.