The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JULY 30, 1931. THE BUDGET.

Hokitika Guardian, 30 July 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, JULY 30, 1931. THE BUDGET.

The budget is expected to be delivered in the House of Parliament this evening. Aj correspondent [remarks that the closest secrecy is being observed by the. Government about the contents of the Budget. Not for, .many years, has a Budget been awaited by the people of. New Zealand with such intense interest, nor has there been, for many years, such widespread fear of heavy taxation felt by all sections of .the community. The economic situation has become progressively worse in-the past year and the United Government has .adopted drastic measures to -meet it, wedding the economic axe at times with almost fierce abandon. Mr Forbes in previous public statements on the finances lias indicated that there is a deficit to make up, and sound finance requires the balance to be brought about. There are reports of a wide range of taxation to be imposed, and. no doubt some new imposts will be made. Mr Forbes lias found out ere this that extra taxation does not always provide the added income anticipated 1 . Despite increased customs, the revenue is less. So also with the totalisator, the returns are substantially lower and the future of some of the levying clubs is ,in grave doubt. Additional taxation on current scales will hardy be looked for, though it is expected the income taxation will be increased. In April last a deficit of five and a-half millions was foreshadowed, but the pruning knife was applied to the civil service a,nd other items of expenditure, reduced the probable deficit to £2.230,000, and this is the amount roughly which will have to be made up in seneral taxation one way or another. Tt is not clear what relief, if any, has been obtained from the recent five million loan, though the aggregate administration costs will .be increased by the annual interest payable on the adtrance. Some saving is expected' in the reduction of interest on loans after

the Ist. August. Some £BOO,OOO war debt repayment has ijeen suspended tor a year, and there is to be some small relief on account of the Singapore base payments. These savings are more than offset by the growing liabilityon account of unemployment. Last year money for relief was taken from the Consolidated Fund,, and' this year money will also have-to be found,-tb' lx> supplemented by . the levies and wages taxation. Direct taxation through incomes appears destined to be increased. And the possibilities of increasing the petrol tax are not at all remote, while there will be some special taxes imposed, it is expected on future art unions and other objects which may be considered in the nature of luxuries. If Customs duties are touched it is not unlikely that both tea and sugar will be taken into account, and 1 this suggests liquor taxes also. The task before Mr Forbes is a difficult one, for wherever he seeks for revenue be will provoke criticism. But the public of New Zealand realise there is a dutv to be done, and it is essential that the country pay its way. To do less is to be overtaken by a financial disaster such as outspreads Australia, With that example so close at hand, it is for the people to make the best of the situation in the endeavour to set the financial bouse in order while there is time and opportunity.