The Daily News. THURSDAY, SEPTEMBER 25, 1919. THE BUDGET.

Taranaki Daily News, 25 September 1919, Page 4

The Daily News. THURSDAY, SEPTEMBER 25, 1919. THE BUDGET.

To the average citizen, the chief interest in the annual Financial Statement centres on the question of taxation, so that as the country had already been informed that there was to be no alteration from last year's taxation, it is probable that the Budget brought down by Sir Jas. Allen on Tuesday will not attract as much notice as otherwise might have been the case. There are a few matters of interest to the people generally contained in the Statement, but for the main part it is a prosaic record of revenue and expenditure, the figures of which, now that we have grown accustomed' to talk of millions, contain no surprise. As compared with the previous financial year both sides of the national ledger show an increase, directly due to war finance. Regarded as a national stocktaking, the Budget figures bear eloquent testimony to the marvellous prosperity' of the country, which contributed to the Treasury during the past financial year over twenty-two and a quarter millions, an increase of more than two millions over the figures of the previous year, while the expenditure exceeded eighteen and a half millions, or over three and a half millions more than 1917-18. There are only two items of revenue that failed to show an increase over the previous year—marine and territorial —the chief advances being under the head of land and income-tax. It is in these latter items there is a cl-ar indication of the wealth of the country, as these two taxes produced £7,732,029, roughly only about a quarter of a million less than the total contributions to the Consolidated Fund in 1908-9. That a small and young country like New Zealand could contribute such a large sum to the revenue gritkout. feeling the burden )»•.

duly is a remarkable achievement, the more so when the loans raised in the Dominion are taken into account, as well as the large deposits at the Savings and other hanks. The expenditure side of the account calls for but little comment, for although there is an increase of a little over three and a half millions as compared with the previous year, interest and sinking fund, and war pensions account for the greater part of the rise. The surplus for the year was £3,678,773, bringing the total of the accumulated surpluses up to nearly fifteen and a quarter millions. It is in connection with this "nest egg," as Sir Joseph "Ward termed it, that the only surprise in the Budget is to be found. Sir Jas. Allen has different views as to the disposal of this money from those of his immediate predecessor, and Ave venture to predict that the proposals of the present Finance Minister will find favor throughout the country. Instead of utilising these surpluses towards paying oft 1 war loan debts, Sir Jas. Allen prefers to earmark twelve and a half millions for soldiers' settlement, £1,200.000 to strengthen the Beservo Fund securities, and to carry forward the balance to strengthen the Con-1 solidated Fund during the early months of the financial year, or for other expenditure in connection with the war. In view of the difficulty in raising further loans the scheme of the Minister for utilising available funds appears to be sound policy, though it is probable it would have been a wiser course to spend the £1,200,000 on public works than in swelling the Reserve Fund to two millions. The estimates for the current, year's revenue follows the usual lines and needs no comment. The expenditure will naturally be large in connection with repatriation and other post-war activities. It was hoped that adequate provision would be made for educational requirements, but there is only an increase of £200,000, to which is to be added the £IIB,OOO voted in the previous year. Manifestly this allocation will only touch the fringe of the subject, especially as grants are to be retrospective, but it may succeed in allaying some of the present discontent among teachers. Apparently the universities are to be more liberally treated. It is, however, satisfactory to note that some attempt is to be made towards meeting the urgent need of new buildings by means of specific loans. Considerable sums of money will be required for other expenditure, so that more than ever will there be an urgent need for economy. The country has done well in the past, so that with care and economy the future can be faced with confidence.