THE PUBLIC FINANCES

Dominion, Volume 25, Issue 69, 15 December 1931, Page 8

THE PUBLIC FINANCES

The position of the public finances for the eight months of the current financial year as disclosed by the Finance Minister this morning is very much as expected. There have been quite sufficient hints dropped concerning the falling revenue of the country to make it fairly clear that the anticipations of the earlier part of the year were unlikely to be realised. The tendency in this respect has been steadily downward. Fortunately the movement on the expenditure side has been in the same direction, though our fixed charges for interest constitute a formidable problem. It may be assumed that Mr. Stewart felt it advisable on the eve of his departure for Honolulu to make known the position up to date, though the period covered, as he indicates, is not one well suited for drawing comparisons with the past. Nor does it afford a clear indication as to the prospective results for the remainder of the financial year. The Minister, however, no doubt has sufficient to go on to warrant his warning that "in spite of the additional ' provisions of the Supplementary Budget and the heavy extra burdens the people have been asked to cairy, the chances of making ends meet in the Consolidated Fund for this financial year are rapidly disappearing.” Mr. Stewart also declares that further substantial reductions in public expenditure will be absolutely necessary and all State services, including social services, will again have to be- reviewed in the light of the existing situation. It would have been more satisfactory if, instead of saying these things would have to be done, Mr. Stewart had announced they were being done, not only in the endeavour to make ends meet this financial year but in preparation for the severer pinch which he anticipates in 1932-33. Most people must realise that stricter economy cannot be escaped, but whatever is done should be carefully planned to minimise hardship and secure the best results. For one thing the public may be thankful—there is no mention of further tax burdens. The emphasis is all on economy. It may be hoped the Government recognises that the limit of taxation has been reached and passed and that ’existing heavy imposts in many cases must be defeating themselves, apart from their repressive effect on industry, trade and enterprise and the handicap they impose on progress toward recovery.