NATIONAL FINANCE

Ashburton Guardian, Volume 54, Issue 257, 11 August 1934, Page 3

NATIONAL FINANCE

EXPENDITURE AND TAXATION.

A PRE-BUDGET REVIEW.

(Special to the " Guardian.") WELLINGTON, This Day. As the Budget is to be presented to the House in a few days, a review at this juncture of the official figures relating to Government expenditure and taxation is not inappropriate (says a statement issued by the Associated Chambers of Commerce). The figures are disturbing in a number of particulars when comparisons are made. Government Expenditure from the Consolidated Fund, and Including Unemployment.

The above table shows how obstinate are the costs of Government, and how ineffective in reducing total expenditure have been the considerable economies effected by the Government in particular directions. The total expenditure has not come down at all, but has actually increased in 1933-34 by well over two million pounds as compared with the previous year, and by over four and a quarter million as compared with 1928-29. As the estimates of departmental expenditure will appear in the House at the same time as the Budget is brought down, it will' be generally expected that lull cognisance will have been given to the need for considerably reduced Government expenditure, and that the estimates will have been framed accordingly. The existing burden on the people as a whole is further illustrated by the following table dealing with taxation expressed as a percentage ot the national income:— Taxation as Percentage of National In came. £ millions.

The table shows that the share of the national income taken by Government from the people by means of taxes has steadily increased from Hi per cent, in 1928-29 to 19 per cent, in 1932-33. Taxation relief in some form or other is fully expected of the Budget by the over-weighted public. They have the additional tax burden of local government rates, and while these are not the concern of the Budget, the fact remains that local government taxes in New Zealand are very much higher per head than in Australia, The position with regard to general Government taxation (exclusive of local government) is set out m the following table: —

Comparative Government Taxation. New Zealand. Australia. £ £ o 1932-33 12.17.9 . 14-4-3 (less reductions in 1933-34) 1.2.5 1933-34 13.13.7 " 13.1-10 The table shows that at the same time as Australian taxation was reduced by £1 2s 5d a head New Zealand taxation was increased by £1 us 10d a head. Still further relief for the Australian taxpayer has now been announced, but so far the lot of the New Zealand taxpayer has been tlio sick heart of hope deferred.

£ 1928-29 24,176,000 1929-30 ' 25,200,000 1930-31 24,708,000 1931-32 27,114,000 1932-33 26,316,000 1933-34 .'.' 28,445,000

National PerIncome tion. centage. 1928-29 153.24 17.83 11.63 1929-30 146.52 19.47 13.29 1930431 108.92 18.59 15.64 1931-32 101.76 17.43 17.03 1932-33 102.96 19.63 19.06 1933-34 (not avail21.48 (not available). able).