King Country Chronicle. Thursday, October 6, 1932. THE BUDGET.

King Country Chronicle, Volume XXVI, Issue 3429, 6 October 1932, Page 4

King Country Chronicle. Thursday, October 6, 1932. THE BUDGET.

During this Dominion’s period of prosperity the publication of the Budget and the Public Works Statement was something like the drawing of an art union. A deficit in the national revenue was not heard of and the Government had money to spend in various ways. To-day the position has changed. The Government is forced to cut down expenditure in every possible direction, and its financial proposals are not popular in any section of r the community. Even so all fair-minded people must acknowledge that these economy measures are not from choice but dire necessity, and the Government would be failing in its duty to the country if it adopted anything but the more unpopular line of action. Without the increased taxation and the economy measures introduced this financial year, the country would have been faced with a deficit in the national accounts of £8,000,000. This deficit has now been reduced to £1,000,000, though it must be realised that the total deficit is nearer £2,000,000, as the payment of £825,000 due on our funded war debt and other obligations has been postponed, thanks to the generosity of the British Government. This amount has to be paid some time, but the concession at least gives the Dominion breathing space until world conditions improve, and the respite is more than welcome. As the Prime Minister states, we are not yet out of our troubles, and while it is at least reassuring to know that there will be no fresh taxation this year, the present burden in this way will have to be boriie for some time yet. Nevertheless, by comparison of what might have been and was expected six months ago, the outlook to-day is much brighter, and there are sound reasons for the hope that the prospects are definitely on the turn, and that the improvement in economic conditions will slowly but steadily grew. The world’s trade has experienced a steadying influence during the last few months. There have been no violent rises in prices for any commodity but a slow all round increase, and this is the best indication for permanent stability. When it is considered that our export prices for 1931 were 40 per cent, lower than for 1929, and very much lower than in 1914, the position might have been 1 much worse to-day had the Govern- ' ment failed to take the measures it did to offset this enormous drop in values. Increased production also helped in this connection. When it is realised that the sum of £1,770,000

was spent in connection with the Hawke’s Bay earthquake, the task of the Government has been extremely difficult. Had it not been for this national catastrophe the Government would have almost balanced the national accounts. Over half-a-million was also expended on repairing the break-down at Arapuni. It will be an eye-opener to many people to know that out of a total national expenditure of £24,860,552, the sum o’> £10,511,989 is in respect of debt services. This gives an indication of the enormous handicap the Dominion is labouring under through the lavish borrowing policy of the past. Taking into account the problems it had to face during the past year the Government has to be congratulated on its Budget, more so because the measures adopted were not popular. It is to be hoped that much of the expenditure of last year will not be recurring, and with world conditions showing some improvement, the outlook generally is very much better than it was twelve months ago.