BALANCED ACCOUNTS

Rotorua Morning Post, Volume 2, Issue 557, 14 June 1933, Page 4

BALANCED ACCOUNTS

The eountry has perhaps jause to feel even more satisfac:ion than the Minister of Finance in the fact that the current accounts have been balanced for the year with a surplus of £40,142. The chief factor which has ^ontributed to this unexpected ievelopment is the fact that revenue eollected' has exceeded the anticipated, amount by £938,500 and expenditure has been restricted, by the introduction of economies, to a figure approximately £112,000 below the amount of the appropriations. On both sides of the ledger, therefore, it is the public which has contributed to the improvement. Both income tax and customs revenue have shown an unexpected increase and the fact that an increase has been possible under the existing conditions,1 is a remarkable proof of the vitality of the eountry. The fact that this vitality has been literally taxec to the limit to provide this proof should temper satisfaction with a realisation that the present burdens cannot be carried indefinitely. It is reported that the saies tax contributed £38,000 toward the revenue returns but this puts forward only one aspect of the position. It is impossible to assess the cost which has been placed upon commerce and industry and the extent of the additional charges which have been placed upon the consumer in order to find this | amount. The saies tax, with the imass of involved and often incomprehensible returns which it requires from the businessman., is typical of the irksome nature of the burdens under which a sections of the community are struggling to make headway. It must be remembered, when contemplating the figures which Mr. Coates has presented, that this £40,000 surplus represents what

is practically the utmost effort of the people to meet the conditions. If this improvement is to be maintained, further burdens cannot be placed upon the people and at the earliest possible moment, steps should be taken to alford them a taxation breathing space. The Federal Government in Australia has apparently realised this necessity for according to recent cables, steps are to be taken at an early date to reduce the unemployment and general taxation. With its propensity for accepting examples from overseas, the New Zealand-. Government, might well follow this example.