THE PUBLIC FINANCE.

Lyttelton Times, Volume CXVII, Issue 17273, 14 September 1916, Page 6

THE PUBLIC FINANCE.

Thb announcement by tfie Hon A. M.. Myers that the public revenue for tho expired five months of the financial year is nearly £700,000 more than that received in the corresponding period last year is welcome in view of the large requirements of the Treasury. Against this improvement in the revenue the expenditure has gone up by a little over £160,000, so that the net increase is rather less than £5-10.000 as compared with the April-August period of 1915.,.. This, change due in part to the higher charges for postal and railway sendees and the additional duties on cheques, receipts and so on that came into operation about thi9 time last year, but apart from those factors the buoyancy of the revenue unquestionably reflects tho industrial and commercial activity, in other words the prosperity, of the country. Nothing has, of course, been collected yet in respect of the tvar taxation imposed last session—the large additions to the income tax and the much-dis-cussed levy upon excess profits. The great bulk of the year’s revenue will come in during the last two quarters, when the land and income taxes, including the excess profits tax, are hound to yield a very abnormal amount of revenue. Probably not many intelligent people. will be surprised to know that the revenue up to tho end of August is so high, but those officials who compiled tho estimates' given in the Budget ought to he overwhelmed with astonishment. Me challenged those estimates at tho timo they were submitted, pointing out'Some of their most obvious faults, and events are proving either that they were framed to mislead or that they exhibit a quite regrettable absence of care. Possibly stronger terms would bo justified, because members of Parliament, who are asked to authorise taxation and borrowing, are bound to construct- tlieir opinions upon data officially supplied as to financial expectations and probabilities. Last session the estimates of revenue were of little real-value for that purpose. The difference between what is happening and what was supposed to be anticipated by the State Departments is altogether too wide. Indeed, tho estimates prove to be. scarcely worth the paper they are printed upon, especially in these times when paper is so expensive. Our point may bo illustrated in this way:—

Official estimate of increnisc m revenue far full financial year . 81,-bl Actual, increase in first five months, nearly .... • 'M- 000

This extraordinary position would bo difficult to believe if the telegram announcing the enhancement in the five months’ revenue was not confirmed by the Minister’s statement that for the year ended August the revenue amounted to more than £15,000,000, being an increase over last year of £2,600,000. The subject is of sufficient importance for ns to repeat the complaint that the public is altogether insufficiently informed about the finances of the country. In contravention of statute law, it will be remembered. the condition of the Consolidated Fund'as at March 31 was this year withheld from the people for nearly three months, and there is always moire delay than there should be in presenting these returns. In Britain details of the public revenue and expenditure are available week by week. We could, for instance, give, our renders quite elaborate particulars of the British public income and expenditure up to nearly the end of July, whereas it swill be about the end of October before the Department will produce New Zealand figures covering that period. As for the size of the revenue, we are very gratified, because the improvement must influence the Government against borrowing any move war money from the Mother Country.