GOVERNMENT SPENDING

Press, Volume CII, Issue 30130, 14 May 1963, Page 18

GOVERNMENT SPENDING

Cuts Called For

At a time when the Minister of Finance 'Mr Lake) and the Treasury were considering demands by Government departments for the current year before the Budget was prepared there should now be a widespread demand for cuts in State expenditure, said the Constitutional Society yesterday. Few citizens had much conception of the increase in Government spending, the society said. Eight years ago the Government spent £337m —“it was thought fantastic and outrageous at the time” —but by 1962 the Budget showed estimates amounting to £ 498.5 m. This was an increase of just on 50 per cent, in the eight years, while the population had increased by only 12 per cent. “Politicians have a readyanswer to any demand for reduction in -axation,” the society said. "They ask if the people want to cut social security, education or defence. The solution as sought by the people does not lie in that direction. It lies in curbing the rapid increase in the number of State employees who draw their income in tribute from the taxpayers.” The society added that perhaps the most serious aspect of taxation was the fact that heavy State spending was a substantial contributor to inflation. which created serious hardship for thrifty persons who tried to provide for their old age.