The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, AUGUST 5, 1831. THE FINANCIAL STATEMENT.

Hokitika Guardian, 5 August 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, AUGUST 5, 1831. THE FINANCIAL STATEMENT.

It seems highly improbable, in the opinion of tire Otago Times, a strong Reform organ, that any of the proposals contained in. the Budget will be rejected by Parliament. Some of them may be cordially disliked, but the consideration which must weigh with the majority of the members is that, if the Budget is to be balanced at all, it is necessary that the community should submit to heavy taxation. There may he methods other than those proposed by the Government that might he employed for the raising of funds, but the particular forms of taxation upon which Mr For bos mainly relies for the fresh revenue that :is required llave the merit that tliev will be productive of large yields that will be easily Collected. The position, it is to be admitted, would have been much loss troublesome df jt had been grappled with earlier. Valuable time was wasted during the absence of .the Prime Minister from New Zealand last year when the financial drift, which had been foreseen by business people, developed seriously and when, apparently. there was no one in the Government who possessed the authority, or, if he had the authority, possessed 'the courage to initiate steps to arrest it. By its own delay in introducing economies the Government unquestionably intensified the difficulties which have lately been crowding upon it. Boldness was imperatively demanded of it if it was to make a real effort at this time to overcome the consequences of its earlier procrastination and to secure the recovery by the Dominion of its financial equilibrium There is, it is to he gathered, a general recognition throughout the Dominion of the boldness when Mr Forbes has exhibited in his Budget. The recognition of the need for balancing the public accounts in the current year may not he so general, but the belief is at least pretty widely held that no useful object would he attained if the Minister of Finance were, to Jslidrk the task to which ho addressed himself as soon as he returned from the Imperial Conference. Jt is not to ho overlooked that one of the main sources of taxation will he much less productive next year than it will be during the current year. Incomers aro heavily reduced this year and, what* ever the scale may be upon which taxation on them will be “levied, there will be an appreciable drop in the yield from them in 1932 33. The certainty that the proceeds of direct taxation during the ensuing financial year will he much smaller than this year is accompanied with the certainty that the appropriations in respect of interest upon the public indebtedness are still mounting up to a serious extent. It cannot he regarded as a matter for surprise that the net pub-' lie debt was increased by £'8.650.000 in the past financial year, for it was shown months ago bv reference to the quarterly accounts that borrowing to a large extent was being practised by the Government otherwise than by publicly announced issues. The knowledge that the net increase in the debt during a period of twelve months has been so extensive as is acknowledged in the Budget must, nevertheless, be highly disturbing to the taxpayers, particularly in view of the fact, to which they cannot close their eyes, that the proceeds of the borrowings are being, at any rate in part, expended upon undertakings that will indisputably prove wholly unproductive. Australia is furnishing an example at the present time of the plight to which a wealthy country may be reduced through the pursuance of a policy of heavy borrowings for expenditure upon unremunerative works. With that example before them, the people of New Zealand should • realise the need for r. curtailment of overseas borrowing to an extent that will provide only for the most pressing requirements of the Dominion..