THE BUDGET.

Kaikoura Star, Volume LXIV, Issue 61, 7 August 1944, Page 3

THE BUDGET.

MR NASH REVIEWS THE WAR POSITION. The Hon. W. Nash (Minister of Finance) presented the Budget in the House of Representatives on Thursday night. He stated: On June 3, 1943, is was my privilege to present to this House the financial statements and accounts for the period ended on the last day of March in that together with the financial proposals for the year then opening. At that time I pointed out the position of the World War, the contribution of our Forces, and the steps the Government felt were required if we were to go forward. On that day last year the German drive against Russia was in course of preparation, and, being launched on July 5, was repelled by the Russians, who commenced their own offensive from Leningrad to Stalingrad and have not yet stopped for any lengthy period. The United States and the Allied Forces were commencing their forward movements in the Pacific. New Guinea was still largely occupied by the enemy'. India was menaced through Bui ma. North Africa had just been freed. The submarine menace had not yet been fully met. China was, and is still, menaced, but her Army continues to fight. The arrogance of the enemy remains, but his power has been- challenged and is fading. To-day, whilst there is still much to do, conditions are different.

General Eisenhower and General Montgomery have organised successful landings in Normandy, and each day brings news of the liberation of further areas in France. The Russian Army has won amazing successes, and may shortly be on the German shores of the Baltic Sea. The men of the Russian Army have shown unprecedented valour, courage, and fighting capacity. Their Generals have out-thought and out-fought the armies of the Nazis; and the United States Navy, Marine, Army and

Air Forces have, in a manner unparalleled, gradually occupned strategic forward areas which have changed within a few months the whole position in the Pacific. Britain, having saved the world in September, 1940, to April, 1941, still stands a monument to a great people with a great leader. ‘Canada, Australia, South Africa, India, and the colonies, with our own Forces, have made, and are making, a great contribution to the work which makes a new world possible. Last, but not least, the signs of dissension are apparent in both Germany and Japan, and those with vision look forward to the end of hostilities; and afterwards to the difficult tasks of reconstruction and development which are so necessary if we are to avoid

like conditions arising again. Every day of the past 14 months men and have lost their lives—and limbs. Some have had their bodies torn and will suffer pain for the remainder of their stay in this sphere. Our duty to those who have served and our task ahead is so to organise the economy of ear country and to order our own lives in a will reduce to a minimum the possibßty of war in the future. We must see that our contribution to the post-war world is equal to the contribution made during the past five years by our fighting men, farmers, women, and other workers —a contribution which has been quoted as an example to the whole world.

We must, however, keep our accounts, and that is why to-night I present you with the record of the year that is past and the estimates for the one to end on March 31, next. The accounts for the past financial year show a surplus in the Consolidated Fund of £2,232,580. To complete the picture of the financial position of the country the Consolidated Fund surplus should be examined with the War Expenses Account and the Social Security Fund. Both these last-mentioned accounts are financed by taxation direct and by transfers from the Consolidated Fund. It is difficult in the case of the War Expenses Account, which is financed partly from loans and partly from revenue, to assess what the exact surplus is for the year, as the term is usually applied to a revenue surplus, but, based on the difference between the opening and closing balances, it may be said that the account showed a deficit of £621,097 Similarlv, the deficit in the Social security Fund amounted to £141,662, so that, taking the results in the three accounts together, we arrive at a net surplus for last financial year of £1,469,821. The principle of pooling of the reieirjc resources to which I have just referred, applies equally to capital resources. Thus since 1941 the only public loans which have been raised have been for war purposes, and the Government have been able to finance the whole of the capital required for national development purposes from departmental funds. Moreover, surplus departmental funds have been applied towards fulfilling war loan requirements Thus the State has marshalled tie whole of its financial resources primarily for assisting in the war effort. FINANCIAL POSITION SATISFACTORY. The position regarding expenditure is very satisfactory in that, although the estimates were exceeded m certain cases, this was more than offset by savings in other respects, so that on balance the total expenditure is well within the amount appropriated by Parliament. Social services chargeable against the Consolidated Fund accounted for £14,600,00 as compared with th. amount authorised (£14,800,000), both of which figures include the amount o± £4 100,000 transferred to the Social . ecuritv Fund as set out in the Estimates. Other votes show an expenditure of £6 800,000 as compared with the £6 900,000 appropriated. Expenditure under the permsanent appropriations—that is, under special Acts of the Legislature—was also, in the mam lower than anticipated, the only exception of anv importance being the transfer which I have already mentioned to War Expenses Account of an additional £6,000,000. . The total amount provided out of the current wear’s revenue in aid of the War Expenses Account was thus (£7,600.000, against the £1,500,000 pro-

vided for in last year’s Budget. In addition, the previous year’s surplus of £4,2‘i0,000 was also transferred to War Expenses Account during the year just closed, making a grand total of £11,700,000, transferred under the statutory authority contained in Section 2 of the War Expenses Act, 1939. Following the precedent of the past five years, it is proposed to transfer l lie 1943-44 surplus in the Consolidated Fund to the War Expenses Account. SOCIAL SECURITY FUND. The actual expenditure from the Social Security Fund for the year was £17,600,000, as against a Budget estimate of £17,500,000. Revenue in the I- mid from the social security charge, registration fees, and miscellaneous was -iip by approximately £1,200,000, the toll I being £13,400,000. This, together with the £4,100,000 fronj Consolidated Fund as originally provided for, enabled the whole expenditure to be met with only a small reduction in the cash balance of the Fund. VICTORY. Commencing this Statement on the war situation, I finish with the same -abject. Victory is certain —it may not come to-morrow, but each day brings it nearer —it will come soon if we put all our energy, physical, and spiritual, into a concentrated effort, until the peace bells ring. To do less than our limit would betray and sacrifice more of our young lives which are so much needed in the world of the future. Given this concen--1 rated supreme effort, 1 believe the day is not far distant when all will again be able to order their lives according t the simple philosophy of that great : ngl shman poet, artist, and craftsman, I William Morris, who desired a world which every man and woman would ■ • able to 44 Work with hope,” and all j v.o\dd be able to “Sleep without fear.’’