GOVERNMENT ECONOMIES.

Manawatu Herald, Volume XLIII, Issue 2373, 29 December 1921, Page 2

GOVERNMENT ECONOMIES.

DRASTIC CUT NEEDED.

Discussing New Zealand finance, the Mercantile Gazette says: —In February, 1923, the revenue from income tax will drop from eight and a-half millions to three millions, the railways will probably show a loss of two millions, and customs duties will proportionately shrink, so whatever reductions Mr Massey makes now in his administrative expenses, increased and drastic cutting down will be forced upon the Government next year, and as an election will follow just after the House prorogues, the Government will have to steer very gingerly to escape the rocks upon one side or Ihe other. Things may brighten up a little before then, but we see no reason to suppose that the revenue will be within six or seven millions of last year’s. Mr Massey is keeping back particulars of the economies he has already arranged for, which he puts at four millions. He has discounted to some extent the loss of income tax by increasing indirect taxation, but if his Budget requirements are 24 millions this year, instead of 28 millions as last year, we shall think that a good start has been made. If, however, he wants 28 millions, then we shall regard his economies as having been made in name only.