N.Z. BUDGET FORECAST

Greymouth Evening Star, 8 November 1933, Page 7

N.Z. BUDGET FORECAST

NO TAXATION RELIEF

WORKS & DEFENCE INCREASES

[SPECIAL TO “STAR.”]

WELLINGTON, November 8

The Budget to be presented to the House, to-morrow evening, by the Minister of Finance (Mr Coates) is not likely to reveal any surprises. The Prime Minister (Mr Forbes) has already made it plain that no decreases in taxation are to be expected this financial year. While the general outlook is improving, the Government feels that in the interests of sound finance it is necessary to retain the present measure of taxation. The same position applies in regard to unemployment taxation as to general taxation, the Minister of Employment (Mr Hamilton) having informed the House earlier in the session that the present rate must be maintained in the meantime. While there may be some disappointment on the part of taxpayers at the prospect of the present rate of taxation being retained, it will be a source of gratification to know that the prospects of any additional burden being placed on their shoulders are remote. The financial position of the country has been steadily improving for some months, and this is likely to be reflected in the note of optimism in Mr Coates’s budget. There has been a fairly general improvement in revenue since the beginning of the year, and the prospective deficit of £4,500,000, which Mr Coates anticipated in his statement made to the House at the end of last year, is likely to be considerably reduced. Customs revenue has shown a definite upward trend and is likely to improve still further before the end of the year. The economies which have been affected by the Government Railways Board are also likely to be reflected in the budget, and the improved land revenue is another factor which must be taken into consideration. It is expected that the Budget will make some reference to public works expenditure. Under the drastic economies which were effected a year or so >ago, the public works vote fell away very considerably, but it is believed that the Government realises it is necessary to make greater allocation than has been possible recently. It is understood that the public works estimates will exceed those of last year by about £400,000, and the budget will probably indicate the direction in which this money will be spent. The allocation is likely to exceed £3,000,000 for the first time in recent years. The estimates which will accompany the Budget will show further signs of the Government’s determination to reduce expenditure to the lowest possible figure. There will be one notable exception, however, the Government’s determination to strengthen the defences of the Dominion, will be reflected in the Defence estimates, which will show a considerable increase on those of last year.

COUNCIL AND BANK BILL.

WELLINGTON, November 8.

Under its rights and privileges, the Legislative Council has power to amend any clause in the Reserve Bank Bill which does not involve expenditure by the Crown. This means that the Upper House may not alter the provisions relating to the purchase of gold, on which some members, particularly Sir F. Bell, held strong views. On the other hand, it- may,, make radical alteration in the appointment of the directors, and the contentious features of the Bill.

LAND VALUATION.

[PEB PRESS ASSOCIATION.]

WELLINGTON, November S.

The caucus of the Coalition Party was held held to-day to consider the proposed Valuation Amendment Bill. The Minister of Lands (Mr Ransom) gave a full explanation of the Bill, and the various points raised by members will be replied to by the ValuerGeneral (Mr Brooks).