WEDNESDAY, JUNE 17, 1891.

Auckland Star, Volume XXII, Issue 142, 17 June 1891, Page 4

WEDNESDAY, JUNE 17, 1891.

The duty which devolved upon the Colonial Treasurer in submitting the Financial Statement to Parliamen 1 last night was, upon the whole, a very agreeable one. The estimates of hi s predecessor had been more than realised, and Mr Ballance came before the House with a substantial surplus which enabled him to wipe out some old scores and make one or two welcome remissions to the public. Despite the retrenchments which have been effected, the expenditure, from causes which the Treasurer explained, exceeded the estimate by but the revenue totalled up the splendid sum of 28 2,504, or more than had been estimated. Adding to this the surplus which Sir Harry Atkinson had calculated upon, Mr Ballance found himself in the happy position of being able to announce to the country that last year, after paying all just claims, the Government of New Zealand had ;£i43>9 6 5 in hand -

The colonial revenue for the current year will be dependent in the main upon the same sources as those which proved so profitable during the last twelve months, for Mr Ballance has wisely determined not to hastily bring into operation the scheme of readjustment in the incidence of taxation which forms the cardinal proposition in the Budget. Therefore he feels justified in estimating the revenue for the current year at plus the ;£i43>'9 6 5 surplus, or ;£4,4*4,765 in all. The reductions which have been made or are contemplated in the public service are" partly set off by certain new liabilities, including the subsidy of towards the Australian Naval Squadron, but after providing for all expected claims, the Treasurer estimates the expenditure at or less tnan tne actual expenditure in 1890-91. Assuming that these figures will be borne out, he proposes that the surplus of .£257,660 shall be thus for the reduction of the inland postage rate to one penny; for the remission of the duty on native leases ; .-£30,000 to open up land for settlement ; .£21,820 to meet a deficit in the land fund; and ;£ioo,ooo to reduce the deficit of 1888. With the exception, therefore, of the postal remission and the tax on native leases, no actual reduction in taxation is proposed, but we think the wisdom of this course will be admitted when it is remembered that the colony is still liable on shortdated debentures for ,£550,000 accumulated deficits from previous years. The Treasurer sees his way to reduce this undesirable floating debt to the extent of £200,000 during the present year by adding £ico,ooo from the £300,000 sinking fund which has been released by loan conversions to the appropriated out of the surplus. There will even then be a sum o f £350,000, arising out of previous excesses of expenditure over revenue for which some permanent provision will yet have to be made. ;;

With regard to the Public Works Fund, the Statement shows that from .an expenditure running into millions fthe outlay by the Government under tfue head last jear was only .£335,151. There is still a loan balance of which will be increased immediately by from released sinking fund, with a prospect 01' further • accretions from the same source. The expenditure of this movey, however, will have to be extended over a series of years, the rejection c*f the loans offered by neighbouring colonies having confirmed the decision of the Government that borrowing must cease. With a net public debt amounting to jf"37.359» I 5 I » most P e °P ]e wiu a S ree that this decision^ none too soon. -J-;;***" , -. ! . V * - ■"■ "'::'■

The Ministerial * proposals with regard to taxation are probably the features of the budget which have been looked forward to with the greatest interest, and which will be roost keenly criticised The scheme which the Treasurer submitted last night to take the place of the property tax is a much more complicated device than that highly discredited piece of financing. Its however, is to distribute the burden of taxation in proportion to the ability to bear it. The tax on improvements on property up to is t0 be absolutely abolished, but it is proposed to impose a graduated tax upon all persons and companies, the value of whose land, Jess the £3,000 of improvements, shall amount to £5,000, according to the following scale: —On a toral taxable value of £5,000 to £ro,ooo, yi&; on a total taxable value of £ 1 0,000 to £20,000, on ditto, £20,000 to ,£50,000, ifidi on ditto, £50,000 to £190,000, i}id; on ditto, £190,000 and over, It is esti-i mated that the deduction of improvements will cause a loss of revenue, of about £69,000, and the graduated tax will bring in an increased revenue of £61,890, which will be paid by less than 3,000 owners. More than ,£25,000 ot the graduated tax will bs by owners

who have each land of greater value than

With regard to the smaller land owners, the Ministerial proposals distinguish between men who have properties, including improvements, which are worth and those whose estate is below that figure. Mortgagees will have to bear their share of the tax on the ground that they are really joint owners of the land. In the case of companies an income tax of is in the £ will be substituted in place of the existing levy upon capital. In levying a tax upon private incomes, the Treasurer proposes to exempt altogether incomes of less than 00 » t0 impose a tax of 3d on incomes over and under and a tax of sixpence over In every case, however, the exemption will be deducted from the amount liable to taxation. These changes are so fully explained in the budget speech, which we publish in another column, that it is unnecessary to recapitulate them here. Without the detailed tables which are attached to the Financial Statement, it is impossible to pass any opinion upon the soundness of the Treasurer's conclusions under these heads.

With regard to the general policy of the Government, we are promised a vigorous settlement scheme, a better system of dealing with native lands and general reform in the administration—all changes which are urgently enough needed. Whether the Ministerial measures are well calculated to attain them, we are scarcely in a position to judge until these measures are submitted in detail. The Government, however, have evidently a good grasp of the urgent needs of the country, and are animated by an earnest desire to satisfy them, and these qualifications will dispose the people to give their policy an indulgent reception.