THE BUDGET

Evening Post, Volume CIV, Issue 28, 2 August 1927, Page 11

THE BUDGET

TAXATION QUESTIONS

ADJUSTMENT OF ANOMALIES

Adjustments in taxation are expected this session, and for that reason the Budget, which will be read in the House to-night, is being awaited with great interest. It will, however, contain no definite indication of the changes which will take place. The taxation position will be. discussed in it, and the country will be able to glean general hints as to the lino which the Government will take.

While this is not an opportune time for decreased taxation —because the Financial Statement still contemplates a falling revenue—the Government will be highly cautious in imposing fresh burdens. The main policy in respect to taxation this session, it can be predicted, -will be one of adjusting anomalies so as to secure a fairer distribution of the burden, and wherever possible to readjust the Customs tariff, not only along these lines but also to improve the conditions of inter-Empire trade. The taxation proposals are unlikely to appear before the close of the Financial. Debate. ( The surplus of revenue over expenditure for last year was £587,000, which is considered to bo satisfactory considering the difficult period the country lias passed through. Customs revenue amounted to £131,000. The Budget will show that for the year 1925-26 the net addition to the Public Debt was £11,000,000, whereas for the last financial year it fell to £6,900,000.

In regard to the Eural Advances system it is expected that the Budget will announce that an early start will be made in the direction of testing the market in respect to the rural bonds. Ehese may be tried either in Kew Zealand or abroad and the security will bo not on the revenue of the' State, but on the security of the mortgages already in existence.

To overcome the housing difficulty some attempt may be- foreshadowed for the natation of bonds for housing purposes, as tne Minister has already indicated that he does not see why such a scheme should not be inaugurated for the housing problem in the cities. It is possible that some mention may be made of the necessity for making an inquiry into the wages system.