The Daily News. FRIDAY, AUGUST 3, 1917. THE BUDGET.

Taranaki Daily News, 3 August 1917, Page 4

The Daily News. FRIDAY, AUGUST 3, 1917. THE BUDGET.

Sir Joseph Ward's financial artillery must have produced an almost stunning effect on the House on Wednesday night, and there is little doubt that the country will gasp at the stupendous figures which formed part of the Budget bombardment. The Minister was able to show a surplus on last year's working of £4,308,777, added to which was the £2,100,077 brought forward from the previous year, making a total credit balance of £0,174,854 (approximately six and a half millions). Out of this surplus revenue the Minister has invested in London close on four millions sterling as a reserve fund. A glance at the statement of revenue shows that in all the important departments there was a considerable increase, the largest being in income tax 1 , which produced over four and a quarter millions, about half a million less thin the gross revenue from the railways. The effect of increased taxation and charges for services is at once apparent. It is worthy of note that the surplus for the year approximates very closely the .".mount of increased revenue. The Dominion's liabilities wer,e not, however, discharged out of the revenue alone, for the total Treasury amounted to fifty millions. Loait and financial operations of an unprecedented character were necessary, over eleven millions of the sixteen million loan being raised in the Dominion at a merely nominal cost, and ten millions has, since the war began, 'been taken from the Post Office, apart from the sum raised by the Post Office on five-year war certificates. Ji'ew Zealand's war expenditure had, up to June 30, reached a total of £23/139,912, and this year will probably mount up to fifty millions, or approximately £SO per head of the population, the gratifyirig feature being that the Dominion is so financially sound and strong that it is able to stand the strain if the pressure is rightly adjusted. This is evidenced by the value of our exports last year, and of the produce in store in New Zealand. To meet war expenditure in the coming year it is proposed to borrow twenty-four milliqns, the half of which is to be put on the market as soon as possible, the terms to be similar to last year's loan. But in /this connection a new departure of a nature has been made in the direction of authority being asked for the introduction of compulsory contribution in the event of voluntary subscriptions to the loan falling short, and those who failed to take up their part in last year's loan, as well as the shirkers of this year's, and any future war loan, will find the conscription of wealth screw applied, but only in the case of incomes of £7OO and over. Just how it is to operate is not disclosed, and judgwent as to its wisdom must be suspended in the meantime. An amusements tax has been imposed, th<» Amount of the tax being on the price of admission, and ranging from one penny upwards. The dropping of the excess profits tax was a foregone conclusion, it being impossible in the majority of cases to ascertain what the amount should properly be. A progressive land and income tax lias been substituted, and should be found to meet the circumstances, there being also a special war tax. cradiis**''

in Hie same way as the progressive income tax, these taxes being estimated to provide £5,800,000. The principle is sound and the results should be satisfactory. The burden will be heavy on Inany, but it is war time. There are many other points in the Budget on which comment its reserved as opportunity oll'crs, but it may bo said that the statement as a whole is on fair and equitable lines.