The Daily News. FRIDAY, NOVEMBER 4, 1921. THE BUDGET.

Taranaki Daily News, 4 November 1921, Page 4

The Daily News. FRIDAY, NOVEMBER 4, 1921. THE BUDGET.

The financial statement presented to the House last night by Mr. Massey, in his capacity of Minis; ter of Finance, is cast on the usual lines. The figures relating to income and expenditure for the year ending March 31 have been made publie and commented upon some months back. No business man can approve of the length of time that elapses between the end of the financial year and the presentation of the Budget. There is, of course, a manifest advantage from a Ministerial point of view 'in being able, after the lapse of seven months, to bring forward any favorable developments that may tone down figures and facts which have a disconcerting effect, though the policy of opportunism is not one that should be encouraged. Taking the statement as it stands, there was a cash balance on March 31 of £4,920,294. It will be noticed that the Customs revenue exceeded the estimate by nearly two and a half millions, whilst land and income taxes produced over two millions more than in the previous year, so that these two items alone almost cover the surplus revenue. It is, however, the expenditure side of the account on which interest chiefly centres, and the fact that there was a rise of nearly four and a half millions has caused serious consternation, especially as less than a million was due to the increase in permanent appropriations, while the departmental expenses were over four millions above last year’s figures. Mr. Massey has expressed his determination to reduce this expenditure and to make the State services self-supporting. If this cfen be done without placing further burdens on the public, well and good. At present the prospect in this direction is none too bright. The Government was fortunate in being called upon to only pay in cash, for loans falling due, less than one and a half millions out of a total of over ten millions, while nearly half a million was converted into inscribed stock. Had the whole of the money been demanded it would have been necessary to raise a loan at a time when money was dear. Another factor which, materially helped last year’s finance was the large increase in post office savings bank deposits, which, on March 31, amounted to over forty-three millions, as compared with nineteen, millions at tne end of 1914. The lure of higher interest has since altered the complexion of this account, but the latest returns exhibit a more favorable position. Naturally the transactions concerning repatriation expenditure occupy a prominent place in the statement, the main features of which are already well known. Land purchased last year for the purpose cost over a million and a quarter. In future this item should drop out. and assistance to soldier settlers be confined to grants for working holdings of Crown lands. The impress of the war on the Dominion’s finances .is very marked. Not only did the public debt increase last year by over five millions, making the amount over two hundred and six millions, but the war expenditure amounted to over three millions. It is now proposed to substitute civilian administration in the matter of the after care of injured soldiers for the military administration now in vogue. For the current year the proposals embrace a large number of projects, most, of which will involve expenditure, but. the revision of the tariff will doubtless provide an appreciable proportion of money, though the lower value of produce will materiiL 1 " “■fl’eat the

revenue. Matters of public health are to be seriously taken in hand —not before a move in that direction was urgently required, especially as to maternity eases and child welfare. The main features are concentration on economy, together with development of the country’s resources, and a readjustment of taxation. Incidentally there is to be a reform in departmental balance sheets, which are to accord with business print cipl eg. Mr. Massey appeals to the public to have confidence in themselves, and to work hard. They already possess the confidence, and all they require is that their confidence in the promise of retrenchment shall not be misplaced, for without its fulfilment they can see no way of getting back to industrial and financial ity.