The Dominion. TUESDAY, JUNE 13, 1933. THE NATIONAL FINANCES

Dominion, Volume 26, Issue 220, 13 June 1933, Page 8

The Dominion. TUESDAY, JUNE 13, 1933. THE NATIONAL FINANCES

At the end of April Mr. Coates was able to announce that the Budget of 1932-33 had been balanced with a small surplus o - few thousand pounds.” This provisional statement has now been confirmed by the audited figures, the surplus being defined as abo . ends a financial year for which Mr. Downie Stewart forecast on April 7 of last year a deficit of £8,300,000, “unless far-reaching adiushnents are made to decrease expenditure and increase revenue. It is true that part of the deficit was made up by trenching on reserves, true also that, by the effect of .the Hoover moratorium nnd Latmnne agreement, New Zealand was saved the. payment- of £1,650,000 on the allowance made' for these items, it was still expected that the deficit would reach a million. Instead there is a small surp l ?®' Had it not been for the increased exchange rate, /which cost the Budget £470,000, the surplus would have been half a million. In spite of the reservations-which should be made, the result is one o which the country may well be proud, especially when greater an . wealthier nations are faced with deficits of staggering dimensions. . One feature of the detailed accounts is the manner in which the Treasury’s estimates' of tax. revenue were borne out. Many critics were doubtful as to whether the anticipated yield under various heads would be realised, even although tax rates were raised.. Particulat interest attached to income tax and, although collections were £900,000 below those of the previous year, they were £156,000 above, the 1 Every other source of tax revenue, except land tax and film-hire tax (a small item), exceeded the estimate. Customs not only overtopped anticipations by £430,000 but showed an increase over ■ the previous year of £230,000. Two new imposts were operative for a few weeks only at the end of the financial year, sales tax and gol export duty, yielding £38,253 and £15,635 respectively. Altogether tax revenue was down by only £585,000, a good result from the Treasury viewpoint. . . . .. ■ From that of the taxpayer, however, the State is still draining too . large a proportion of the national income. The proportion is . all the larger as the national income declines. Moreover the separation ’ of unemplbyment charges from the Budget partially conceals the fact that'a further £4 million is deducted from private incomes to help those-out of work. Thus the total taxation last financial year was about £l9| million or one million more than was paid in the com-, paratively*.prosperous year, 1930-31. ■ . ' -n j : These remarks are not offered in depreciation of the Budget result; which is unexpectedly good, but as a reminder of the continued need for strict economy. A-difficult road still lies ahead,'although there are many signs of improvement. With the announcement of the surplus this morning, for instance, are published several /news items of direct and encouraging import to New Zealand. A firm rein is still needed but it begins to look as if we could proceed with more confidence.