The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, AUGUST 5, 1899.

Waikato Argus, Volume VII, Issue 470, 5 August 1899, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. SATURDAY, AUGUST 5, 1899.

The two notable features in the Financial Statement are that the Colonial Treasurer in one breath claims a surplus of £495,861, and in the next admits that the net debt ot the colony, during the past year has been increased by £1,974,582. How the increase in the debt has been arrived at is clear enough, we have borrowed the money on the London markets. The surplus, or what stands for it, is not quite so easily accounted for. As Mr Seddon once said when in Opposition, there is nothing more simple than creating an apparent surplus—- " underestimate revenue and over estimate expenditure an v d the trick is done." In our case at present there is a third trick possible, much more injurious in practice than either of the others, and that is to allow the railway lines and plant to deteriorate, in place of keeping them iu a state of efficiency out of current revenue, and placing the sum thus saved to the credit of the department as having been honestly earned. There is still another mode of creating an apparent surplus—not spending money appropriated. That the railways have not been kept in a state of efficiency i 8 clearly demonstrated by the Premier's proposal to apply £225,000 of the contemplated loan to putting existing lines in an efficient state. The surplus claimed by the Premier has also been added to by £BI,OOO received for cash land sales and £21,000 for land sold on deferred payment. We are aware that it has been the custom to treat the proceeds from land sales as current revenue, but the principle is bad. In connection with the laud question, it must be noted that the Premier estimates a fall of £6OOO under the head of territorial. This he accounts for by the estates which have been, or are to be, purchased? no longer bearing taxation. Until now it has been maintained by the Government that the purchase of estates added to the revenue iu place of lessening receipts. The state of affairs divulged in the statement is far from satisfactory, the indebtedness of the colony has been increased by eight millions since the present Government took office, and the Premier estimates that the expenditure during the current year will exceed that of 1898-99 by £200,000. It is now proposed to borrow another million and the statement by the Premier as to how the money is to be applied is of such a generalising character, that it is to be hoped Parliament will not sanction the loan, till the money is more definitely earmarked. This can only be done as regards one branch when the Public Works Statement is before the House, and it would be infinitely more satisfactory if that statement were brought down before members are asked to sanction the loan. The Premier on a previous occasion said that as the public works to be undertaken depended upon the estimates being passed, the statement could not be brought down till the budget proposals were acceded to. We maintain that this is not the case; the Public Works Statement could be put before the House based upon the assumption that the proposals of the Government would be adopted, and in the event of their not being so the public works scheme could be modified to meet the position. As the financial business of Parliament is now conducted the House has little or no control over details, it votes a lump sum and Ministers are left the discretion as to whero and how the money shall be spent, which constituencies shall be rewarded, which punished and which bribed. It is the duty of the House under any and every condition to ear mark every sum voted so far as such insistence is possible.