A BALANCED BUDGET

Rotorua Morning Post, Volume 2, Issue 519, 1 May 1933, Page 4

A BALANCED BUDGET

The Minister of Finance (Rt. Hon. J. G. Coates) may justly feel satisfaction in the announcement that he has been able to balance the eountry's working expenses during an unprecedently difiicult year and his satisfaction is this respect (thongh possibly not from the same eauses) will be shared by the taixpayers at large. The improvement in revenue which has largely made this possible, may be fairly taken as yet another of the many hopeful signs which at present point the way to a general reeovery, not only in New Zealand, but in the world in general. It is true that these signs are based more upon hope than upon experience but they are nevertheless to be discerned. The chief of these is undoubtedly the improved f eeling between Great Britain and the United States and the mutually helpful attitude which appears likely to follow upon the recent eonversations between Mr. Ramsay MacDonald and Mr. Roosevelt. In its wider sphere, reciprocity between Great Britain and America and the consequent general improvement in world relations, must have a very marked effect in New Zealand but in the meantime, New Zealand has done something for herself by balancing her current accounts. Bei yond the prediction that the ac- ! counts will be balanced, Mr. j Coates has not entered into dej tail in his statement and it is i therefore difiicult to understand the precise factors which have contributed to this unexpected reeovery. As the Minister pointed out, the budget originally was ordered to make allowance for a deficit of something over two millions and the fact that this has been avoided without any further encroachment upon reserves than was -originally intended, gives cause for general satisfaction. The country has been sorely tried to achieve this result and the fact that at last some definite.progress has been made should go a long way) toward restoring the confidence

which is so urgently required to re-vitalise the'tone of business. It should also be borne in mind that the effects of the saies tax and exchange legislation have not yet been felt on the revenue side and if the present position is maintained, it should be possible for the Government to consider some measure of relief from these two very serious burdens placed upon commerce and industry. Great detail is undoubtedly necessary before any considered judgment can be passed upon the position but there is no doubt that the improvement reflects a much more satisfactory management of the Dominion's finances and promise for brighter days ahead.