The Putaruru Press PUBLISHED EVERY THURSDAY ’Phone 2S – P.O. Box 41 Office – – Oxford Place THURSDAY, AUGUST 7, 1930. THE BUDGET.

Putaruru Press, Volume VIII, Issue 350, 7 August 1930, Page 4

The Putaruru Press PUBLISHED EVERY THURSDAY ’Phone 2S - P.O. Box 41 Office - - Oxford Place THURSDAY, AUGUST 7, 1930. THE BUDGET.

WHEN a Minister of Finance finds himself confronted with a deficit in the national finances he has to take drastic steps to restore the balance. No matter how he proposes to increase the taxation exception is bound to be taken and objection raised. Mr. Forbes had an unpleasant duty in presenting his first Budget. In the main he seems to have striven to spread it over all sections of the community, and in this he has been successful. The great problem that the Budget presents is whether it will realise its expectations. To disturb trade and business when it is already bad may only add trouble. There is reason to think that the Minister has concentrated too much on the question of how to raise the needed revenue, giving insufficient consideration as to the effects of his proposals on the country. The re-establishment of a buoyant tone depends on a good season and improved prices for our primary products. If this eventuates then the present depression will pass, and the Budget will accomplish its purpose. If not, then there is the grave fear that the reaction may be more serious than Mr. Forbes foresees or is prepared to admit.

In business there are two ways of meeting bad times. The first is to increase the revenue, the second to reduce the expenditure. Usually commercial enterprises find the first method the more difficult to accomplish. The Government has resorted to increasing its revenue through higher taxation. What steps has it taken to reduce the national expenditure ? What is the Government railway policy ? Is it proposed to continue the construction proposals of the late Prime Minister, which only threaten to increase the load of dead weight pressing on the taxpayer? The country as a whole would have accepted the incraased burden of taxation with greater equanimity if it cpuld believe that the Government was earnestly striving to effect economies in the many directions which present themselves.