THE BUDGET.

Taranaki Daily News, 24 August 1922, Page 9

THE BUDGET.

WORDS AND MORE WORDS, (From Our Correspondent.)' Wellington. August 15. The least admirable feature or the Budget read by the Prime Minister, in hi? capacity of Minister of Finance, in the Hvt’-.e of Representatives last night was its prodigious length. Fifty-two pages averaging 720 words to the page, gave a total of over 37,000 words, which Mr. Massey, standing" on his feet for two hours and a half and taking certain short cuts, spun off at the rate of 25,000 words an hour. Mr Seddon, in his most profuse days, never got beyond 25,000 words on such an occasion, and Sir Joseph Ward always was well on with his peroration before he topped the 20,000 words mark. The record rests indisputably with the Reform leader. But by and by Mr* Massey himself will realise the utter futility of such a herculean task as the one he saddled upon himself last night. Not a score of people within hearing were listening with any interest to what he was saying. Had the Minister spoken a brief summary of its contents and then laid the document on the table, he would have saved himself a great deal of breath and spared the House from a positive infliction. BY ANOTHER NAME. The Budget laid no claim to be a literary production. William Ewart Gladstone, who could make fascinating reading out of such material as a State Treasure offered, so far has had no peer in New Zealand. But the mass of facts and figures Mr. Massey had collected from rhe various Departments were 'turned to good account in putting the best possible complexion upon the finances of an extremely difficult year. The Minister showed quite frankly that the expenditure during the year had exceeded the revenue by £339,831. but he managed to do so without using that ugly word “deficit.” He reduced the balance on the wrong side to £279,831, by deducting certain repayments made by the Southland Electric Power Board, and ■ then described what remained as the “net amount required to adjust expenditure and revenue.” This is a euphemistic phrase which is bound to grow in favour at the Treasury. More than this Mr. Massey is going to borrow enough from the accumulated surpluses to “adjust” the difference between expenditure and revenue and to ensure a surplus for next year. No doubt thif is sound finance,* but to the layman it is very puzzling. ECONOMICS. Though the net expenditure for last financial year showed an increase of £398,108 upon that of the preceding year, Mr. Massey claimed to have effected many economies. His figures •were quite clear, but after the adjournment no one in the lobbies seemed to know exactly what they meant. He made up a total of £5,190,419 by including “reductions in the estimated expenditures of 1'921-22 and 1922-23,” “Savings in interest, and sinking fund charges.” “reduced Services and financial adjustments” and “economies, savings and reduction s,’ and no doubt during the course of the debate on the Budget more information on the subjest will be given. Meanwhile the faithful will have to take a good deal on trust. It is not disputed, however, that the annual increase in the public expenditure received a distinct cheek last year. In 1916-17 the increase was £1.565,663; in 1917-18. £1.061,517: in 1918-19, £3,553.312; in 1919-20. £5,107,925; in 1920-21, £4.287,206. and last year only £398,108. The Government obviously has awakened to the fact that with the altered conditions the old rate of expenditure cannot be maintained.

THE CRITICS. It is not easy to ascertain to-day what members of the House think of the Budget and its proposals. Most of them, of course, will ultimately think according to their party colour, as politicans have done from time immemorial whenever finance has been concerned. Few of them, however, yet pretend to have read and studied the portly collection of figures. Those that have do not appear greatly impressed, except by the great difficulties confronting the Minister and the courage with which he is facing them. Business men in the city, speaking generally, are frankly dissatisfied. They are disposed to think the Government’s economies are purely paper economies. and that the amounts transferred from the accumulated surpluses have no tangible existence. Even the Dominion, the mouth-piece of the Reform Party, lias lingering suspicions. “At an immediate view,” it says, “the estimate of expenditure for the current year compares disappointingly with a catalogue of economies effected and proposed running into well over five millions sterling.” But this is only a passing spasm of candour. To-morrow all will be lovely in the Reform garden.