Budget Spending May Be Increased

Press, Volume CIV, Issue 30761, 27 May 1965, Page 13

Budget Spending May Be Increased

(New Zealand Press Association)

ELLINGTON, May 25.

The Prime Minister (Mr Holvoake) said tonight that while budget expenditure might be increased this year it did not necessarily follow that taxation would be increased.

He said this tonight at a press conference after a full day's discussion on the budget by the Cabinet. The budget would again be designed to combat inflationary tendencies in New Zealand.

Questioned as to the main problems facing the Government in drawing up the budget he said the overriding problem was to continue to contain inflation. Two Years Ago

Asked if he expected the current inflationary tendencies to continue, the Prime Minister said:

“We certainly had a better balance in the economy between supply and demand two years ago than at the present time.” The Prime Minister declined to say if he thought inflationary tendencies were increasing in New Zealand.

When asked if the budget would make allowances for increased expenditure, he said it would be most unusual if it did not. Queried as to whether or It will be made by increases in taxation, Mr Holyoake said: It will be made in increases in revenue.”

The Prime Minister defined revenue as taxes, loans and yields from Government activities—which he described as considerable.

Asked if he meant budget expenditure increases would be met completely from revenue, he said “I hope completely.”

The Minister of Finance (Mr Lake) will present the budget on June 10.