The Taihape Daily Times AND WAIMARINO ADVOCATE. WEDNESDAY, JULY 28, 1920. THE BUDGET.

Taihape Daily Times, Volume XI, Issue 3538, 28 July 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

WEDNESDAY, JULY 28, 1920. THE BUDGET.

With which is incorporated “The Taihape Post and Waimarino News ’’

Tlie Financial Statement delivered by Mr Massey, Minister of Finance, in the He use yesterday, is indeed a document of big figures, easily topping anything from the hands of any previous Minister of Finance. There sure enough is the anticipated surplus. Mm•sters in J»te years take care to so over-estimate that they may boast of having a surplus. It i's as well that „11 should understand that although there is a surplus of £2,299,416 expenditure for the year ended olst March, 1920, was in excess of that or the previous year by over five millions. The Government got’ through £5,108,325 more money last year than they did in the previous year, interest and sinking fund requiring £1,162,657 more than in the year ended March 1919. Departmental services have cost more than in the preceding year by nearly three millions, but in looking at the estimates for the current year it becomes obvious that expenditure is going to increase by upwards of three millions over last year. The rapidly mounting expenditure involves figures that are truly alarming, and those who do not discover under the savoury moss of pottage ilctyed /out with them a really grave financial situation will meet with a great surprise. Last year expenditure topped the previous year by over five millions and the Minister estimates that the current year will show a further increased expenditure of over three millions, equalling about »ight millions and h-half increase -of lexpendituire in> only two years, and the probabilities ■ augur a much larger expenditure than that estimated. Considering the enormously increasing expenditure year by year the Minister’s regrets at 'not being able to reduce taxation are scarcely understandable, and he discloses that he had no conviction whatever that he might find it possible to reduce taxation by his remark that it might continue on a higher basis for some time. The expenditure of the Consolidated Fund during the last two years amounted to £8,661,636, but as the revenue for the same period only increased by £5,875,118, it is apparent there w r as a consolidated fund deficit of £2.786,508. However, the Minister manages to show a surplus of total revenue over total expenditure of about the amount of the consolidated fund deficit, xls taxation proposals; interest the ordinary citizen and particularly the wage-earn-ing classes the estimated revenue for the current will claim most attention. Members of the House had expressed an almost unanimous hope that the Minister would readjust taxation so as to relieve those who are suffering most from the high cost of living, but It is evident the Minister had no intention of doing anything of the kind, for whatever reduction is in* dicatcd in the estimates favour those wealthy classes who can best afford to pay. There is .a reduction on death duties and stamps of roughly £250,000. There is also a decrease in land and income tax while he claims to be increasing the number of the classes from whence these taxes come is something that will warrant more detailed explanation. Yet another committee Ims been set'up to act as a buffer between the constituencies and the Government. Ir i s a Finance Committee to whom will be referred the Land and Income Tax. and the death duties and stamps. But Mr Massey has anticipated his Finance Committee, or given them an Irishman’s hint as to the course they are to follow. If not. why do his estimates show that the only taxes he intends to reduce arc the very ones mentioned as having (o go before the (Finance Committee? Inidirect taxation by which the masses are roped in is to be largely increased. Customs are estimated to yield a considerably high sum: post lag/d telegraphs are to return an increase of £250,000. and the probabilities .ve that that, sum may bo doubled. Of course, the people may decide to set up a partial boycott of posts and telegraphs owing to the outrageously over-reach-ing increases in postages and telegrams the Minister is extorting. |f „„„ thing of that, nature should eventuate tfif ealeulations of the Minister may be rudely upset. Railways are to 1 be squeezed for a few more hundreds of thousands; in fact, there seems to be a determination to make in,foV-com-uiiiuication as dear, therefore as difficult, as possible. There can he no doubt that the taxing proclivities of the Minister are of an extraordinarily agressive character, but of course that is natural, and necessary to prev’de for his maria for expenditure. The Minister has not treated the subject of txation volubly. ■ being* particular not to say too much or to throw ary ones-

t.lonabTo illumination thereon, half of a voluminous budget only being devoted to the j twin subject of taxation and finance. Some alterations are promised during the present session; there are anomalies requiring removal, and adjustments made which, are to relieve certain sections of the community who feel that they are paying more rhan their fair share —lucky section. Altogether ,it is a more than ordinary pretentious document, but as it did not come into our hands till this morning more detailed and comprehensive criticism must be hold over for a future issue. i