A STATE AUDITOR'S WARNING

Nelson Evening Mail, Volume LVI, 11 October 1922, Page 2

A STATE AUDITOR'S WARNING

EFFECTS OF OVERTAXATION In his report on the public accounts for the financial year 1921-22, Mr b. A. (Joghlan (Now ‘South Wales AuditorGeneral), states that a study of the Treasurer's accounts should give due appreciation of the gravity of the situation,, and should make for readjustment of points of view which have been inimical to reduction in expenditures. What, was wanted, so far as many of the basic matters with which the accounts were concerned, was an efficiency audit over and above the audit prescribed aft present by law. After mentioning that the total accumulated deficit at Juno 30th last was £3,587,262, the Auditor-General says: “A factor of prime importance is our constantly increasing interest bill. Ten years ago our State interest payment, which was then £3,582,952, was regarded as of alarming proportions, but in the year just closed we paid £7,747,206 4s 5d for interest on our borrowings. This increasingly heavy load must always be reckoned with as absorbing the firstlings of our revenue. We have assets for the principal, but the interest the Stale must earn and pay. Another factor is that of which we have now abundant evidence, namely, that the measuvj a bio limit of income taxation is being !reached. This has been' brought abqut by the dual payment of our citizens, j who not only have to meet State requirements, but also contribute their moneys to meet the extraordinary exIpendituro of a Federal control. The State is suffering from the effects of over-taxation, and calls for the restraining power of balanced expenditure. The over-spending of the past stands as a warning for the future.” i