The Daily News. FRIDAY, AUGUST 18, 1922. THE BUDGET.

Taranaki Daily News, 18 August 1922, Page 4

The Daily News. FRIDAY, AUGUST 18, 1922. THE BUDGET.

The Financial Statement delivered in the House by Mr. Massey on Tuesday evening is chiefly remarkable for its inordinate length, probably accounted for by the necessity to make the best of a by' no means brilliant financial year. The taxpayers are not concerned with how the estimates pan out, but with the relation of actual receipts to expenditure. The details of the revenue speak for themselves, while the expenditure side of the account, without showing the amounts owing on March 31 last, may be less than stated. Taking the figures as they stand, the revenue collected was more than ■ six millions below the total for the , preceding year, the falling off in Customs accounting for nearly 3J millions, income tax dropping 2£ ; millions, railways and miscellaneous accounting for most of the re- , maining decreases. At the same i time, considering the period of de- . pression, the fact that over 28 millions was collected last year is elo- j quent testimony to the financial strength of the people of the Do- I minion. It is when the expenditure side of the account is examined that cause for uneasiness is i found. The Statement contains several references to the Government’s activity as regards economy, but the accounts themselves ■ show little trace of the use of the pruning knife. What is shown is 1 that the rapidly mounting expenditure in the various departments has been cheeked. For that we | must be duly grateful. The expen- j diture accounted for totals almost i 28J millions, nearly £340,000 in ex- . cess of the income, and about £400,000 higher than in .the previous year. The Treasurer claims . to have effected actual economies from April 1, 1921, totalling £2,352,863 in departmental expenditure and £696,950 in interest and , sinking fund charges, the grand ( total of savings being set down at £5,190,419. In the absence of the : usual comparative table of expenditure for last year and that, of the preceding year it is not easy to follow the increases or decreases of the various departments, but it would seem there is still scope for '

considerable pruning in the outgoings. The use of surpluses to make up deficiency of income appears to have come to stay. The ’ principle is not one that can be applauded, but at present it is indispensable. These accumulated savings are being made to play the part of a financial fairy godmother, converting deficits into surpluses. The ; estimated cash bal ■ anee at March 31. 1923, is put down at. £4,343,152, after transferring millions to the Public Works Fund. Among the promises made are to be found: Development of backblocks and hy-dro-electric power, land settlement to be actively promoted, industries stimulated, telephones extended, wireless facilities provided, naval subsidy increased, . an investiga-| tion of pensions,- reduction of debt | by' five millions, rural banks established, irrigation developed, swamps drained, and railway construction expedited. Already the current year is nearly half gone- i so it is hardly likely that much of the ambitious programme will take shape. have to realise that the times we are passing through are very difficult, and that the Treasurer’s task in balancing accounts consequently is not an enviable one. The country’s financial recovery is handicapped by the drain of taxation, and it is for the Government to bring to its assistance the best business brains of the country to overhaul the spending departments with a view to substantial reductions in expenditure and ensuring greater efficiency. They would find plenty ot scope for their activities, as did the Geddes committee at Home. As a country we are still living beyond our means, a fact which the Premier apparently realises, and no means to reduce expenditure should be overlooked