King Country Chronicle. Thursday, August 17, 1922. THE BUDGET.

King Country Chronicle, Volume XVII, Issue 1713, 17 August 1922, Page 4

King Country Chronicle. Thursday, August 17, 1922. THE BUDGET.

The 1921-22 statement of tlie Government’s financial position is now to hand, and shows that there has been a decrease in revenue to the amount of .Hi, 133,955 compared with the previous year ended 31st March, 1921. The decrease in the amount received from Customs and income-tax, when compared with last year, shows a difference of 1:5,559,248. These two items, more than any other, tend to show the spending power of the people and the state of trade throughout the Dominion. The decrease in revenue from the railways amounts to £235,256, and indicates that trade

conditions are not what they were. I The large increase of the duty on ' beer is a significant fact that, not- j withstanding the general depression | prevailing, there is a section of the community that are averse to giving j up their luxuries. The brightest I‘ea- j ture in the whole statement is the j substantial increase of £108,323 in the postal and telegraph returns. By j the practice of economy it might be expected in the year to come that this department at least might be put on a business footing and made to pay its way. The total amount of revenue derived during the year amounted to £28,127,007, while the expenditure was £28,466,838. This shows a deficit of £339,831. The balance to the credit of the consolidated fund at 31st March, 1922, was £7,531,367, so that there is still a balance of £7,191,536. The holding of £2,409,251 from the 1920-21 Customs returns was a wise precaution on the part of the Government in view of the inevitable drop in the revenue from that source last year. It would appear that the one department above all others that wants the pruning knife is the railway. The actual working profits on this department for the year was £405,864, and this only allowed for 1.07 per cent in capital costs. If the interest on capital cost was set at 6 per cent —the current rate—there would be a very heavy loss shown. The annual interest bill for the Government loans, including sinking fund charges, is £10,875,185, and the gross indebtedness per head of the European population is £175 9s lOcl. The proportion of the Government loans held within the Dominion is 50.60 per cent, so that it is a certain source of satisfaction to know that this proportion of interest on the loans is being distributed within the country.

During the year ended 31st March, 1920-21 our imports exceeded our exports by £19,243,597, but during the following year these figures have been more satisfactory, for the exports exceeded the imports by the sum of £7,671,627. The estimated revenue for the current year is set down at £26,250,000, and the expenditure £28,188,215, so the country is faced with a deficiency of £1,938,215 on 31st March, 1923. These are the main figures of the 1921-22 Budget, and it will be seen that the country can look for no relief in the way of taxation for this or the following year. The only way that taxation can be reduced after 1923 is by rigid economy in Government administration and increased production on the part of the general community. The Premier has pointed out that economy is to be still further carried out in all departments, but it is necessary that this should be a gradual process. This is quite true, but the Budget would present a much healthier tone to-day if the cutting down of expenses had been started two years ago. If action had been taken in this direction at an earlier period, the country would have been in a much stronger financial position than it presents to-day. However, we have to face facts, and it is quite apparent that there are difficulties to overcome. It is only by hard work on all sides, and the elimination of the extravagant spirit that has characterised both the Government and the people the last few years, that the Dominion can hope to return to a state of stabilitv.