Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, AUGUST 19, 1949. THE BUDGET

Ashburton Guardian, Volume 69, Issue 263, 19 August 1949, Page 2

Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, AUGUST 19, 1949. THE BUDGET

The most eagerly-awaited document of the year, the Budget, was presented in the House of Representatives last night by the Minister of Finance, the Rt. Hon. W. Nash, but it contained less to enthuse over than any similar presentation since the present Government has been in office. The fact that this is election year has not influenced ■ the Government in the slightest degree, and those who were hoping for “plums” in this direction are possibly feeling somewhat disappointed. Mr Nash was at some pains to stress that the year had been one of general buoyancy and success; that there had heen a comfortable surplus in the Public Account; that economic, activity was at a higher level than ever before, and that the Government's 'financial policy had prevented buoyant conditions from developing into inflation, and yet he sees no means of easing the still heavy burden of taxation. His excuse for not assisting the taxpayer ’s that there is no way of reducing taxation very substantially unless by cutting social services and reducing the number of civil sei - vants, and the Government does not intend to do either. The taxpayers who benefited by the HO income tax rebate last year will be grateful for this small relief again this year, but in view of toe buoyant conditions prevailing and the record trade figures, . an increase of £5 at least in tins 'amount would not have imposed a very great strain on the finances of the country. Some sections of the community are to receive slightly increased social security payments, and no one will begrudge the beneficiaries the few shillings extra. It is of some interest to note that it is expected to spend £1,500,000 more on housing this year than last, while the extra cost of educational build ings will be £621,000. There has been a large deficiency m this department of the educational pio gramme, and the surprise is that the estimate is not a good deal larger. The electric, supply situation has been the cause of con siderable controversy for a long time, and while the estimate oi: £6,350,000 seems high, it is only £1,350,000 in excess of last year s expenditure, so that it does not seem likely that the existing trouble will be overcome in the next 12 months. An estimate o £2,500,000 has been provided for telegraph and telephone extension work, and with the promise of the early arrival of plant which has been ordered for some time, the public can look forward to receiving these long-awaited faci 1ties. Summing up the situation, it can be said that the Ministei had two alternatives. . He cou.d either have reduced direct taxation in the hope of popularising the Government in view of the forthcoming General Election 01 he could have kept taxation at tne existing level, extending some benefits to sections of the community out of appropriations from a buoyant levenue.. c chose the latter course, and it remains to be seen how the country as a whole accepts his policy.