THIS BUDGET—AND THE NEXT

Dominion, Volume 26, Issue 15, 12 October 1932, Page 8

THIS BUDGET—AND THE NEXT

Speaking in the Financial Debate, Mr. Ansell has rightly directed the attention of the House to the shifts—however justifiable they may be—by which the Budget has been balanced. That is the stern reality members should confront in the present Debate. As we have already Sn the Government this year is over five million pounds short o meeting expenditure out of income and to that extent is meeting current has not been balanced. “As far as lam aware” the Prime Minister says, “this is the first time that this Dominion has been so hard pressed as to find it neces^< J^ d p to budget for a deficit.” To reduce that deficit to a million Mr. Forbes has found it necessary to bring in reserves that cannot be used again. In the circumstance the House should settle down to serious dissection of the National Accounts. Can the estimates of revenue be wholly accepted? They are conscientiously compiled but these arc extraordinary times. Last year they fell short of expectations by £1 946 000. More accurate results should be possible this year since the estimates were framed later. Nevertheless Mr. Forbes commen s on the uncertainty of the yield from some items, such as income tax, and has doubts whether landowners will be able to pay land tax up to the amount budgeted for. Many other points could profitably be taken up by members Moreover, when they have- completed their survey of the current financial year, they might evince some curiosity as to the prospects foi the next —now less than six months away. The soldiers’ settlement mortgages cannot be pledged for ready money a second time; payments to Great Britain on the Funded War Debt may have to be resumed in the second half-year; there will be the floating debt created by two years’ deficits to meet, or at least the interest on it. How is next year’s Budget to be balanced if spending continues at the existing rate? In a sense the Government, Parliament and people—all of us—are banking on a return of prosperity through a general and considerable rise in prices. Waiting for something to turn up., But are we right in doing so, have we sufficient grounds for such hopes? Conditions are improving slowly, but too slowly as yet to provide the solution of how next year’s Budget is to be balanced. Therefore Mr. Ansell did rightly to impress on the House the continued need for controllitig expenditure. Thanks to him the Financial Debate has been reopened this week on a responsible theme which could be sustained with advantage.