THE BUDGET.
SOME EXPECTATIONS. REVISION FORESHADOWED. WELLINGTON, July 13. Some consideration will probably be given by the Cabinet this week to the Labour Government’s first Budget, which is in course of preparation by the Minister of Finance, Hon. W. Nash. As yet it is too early to state exactly when the Budget will be presented in the House, although it is the Prime Minister’s desire to have it brought forward and the debate on it opened as soon as possible after the House meets. Both Mr Savage and Mr Nash are confident that Labour’s first declared Financial Statement will be a “cheerful document.” Naturally the possible provisions of the Budget are being kept a closely-guarded secret, but there is a feeling in Parliamentary circles that at least some revision of taxation is foreshadowed.
According to present indications it is doubtful if there will be any general lightening of the taxation burden. Although Government revenue is buoyant, expenditure is not decreasing. Air Nash is in favour of balancing Budgets—indeed, he told a deputation as much only last week —and the general assumption is that if relief from taxation is granted in any one direction, a similar yield must be obtained from some other source. There lias been some talk of the reimposition of the graduated land tax. but probably the greatest interest will centre in the Government’s income tax proposals. A plank in the Labour Party’s election'platform was the abolition of the sales tax a 6 soon as possible but, on the present indications, it does ' not appear that the revenue from that tax can be sacrificed this year.
The Government’s declared poliev is for the replacement of indirect taxation by direct taxation as far as is practicable, hut from statements made by the Prime Minister and others it seems that a change in this direction can only he made in progressive stages. 'Whether the first stens in this policy of change will be taken in this year’s Budget remains to be seen.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/MS19360713.2.82
Bibliographic details
Manawatu Standard, Volume LVI, Issue 190, 13 July 1936, Page 6
Word Count
332THE BUDGET. Manawatu Standard, Volume LVI, Issue 190, 13 July 1936, Page 6
Using This Item
Stuff Ltd is the copyright owner for the Manawatu Standard. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.