King Country Chronicle. Wednesday, November 3, 1937. PUBLIC EXPENDITURE.

King Country Chronicle, Volume XXXI, Issue 4564, 3 November 1937, Page 4

King Country Chronicle. Wednesday, November 3, 1937. PUBLIC EXPENDITURE.

Discussion on the question of public expenditure in the House of Representatives has been stifled, but the attention of the people of New Zealand to the ever-increasing total has once again been drawn by the financial debate. The cost of government is piling up steadily, and no indication has been given that the rate of the increase will be greatly diminished, if at all. Public expenditure in the 1934-35 period amounted to £24,499,595; the following year it was £25,890,568; the next, £30,675,158; for the current year the estimate is £34,427,721. In the Government's first financial year expenditure went up by £4,784,590; this year there is a further rise of

£3,752,563. How much further is this expenditure going to mount?. The money for it has to be found out 'of taxation, and how is that taxation going to be found should our national income contract. The Hon. Mr. Nash realises this position. He wholeheartedly condemns the principle of overseas borrowing, but tentatively agrees that circumstances in the future may make it necessary to tap the overseas money market once again. The reason for this important qualification is very evident. Mr. Nash realises that the present system cannot be indefinitely maintained out of taxation and internal borrowing alone. Another most important point is borne out by the report of the National Expenditure Commission presented in 1932. This Commission came to the conclusion that there was far too much overlapping and waste in the organisation of the State departments, and in its recommendations for reform laid down certain rules which, if strictly observed, should enable the cost of government to be kept within reasonable bounds. These rules have been ignored, and for that the counti*y must at some time pay, both in ovei'seas borrowing and in hardship and unemployment.