NATIONAL FINANCE

Nelson Evening Mail, Volume LXVI, 11 August 1934, Page 8

NATIONAL FINANCE

EXPENDITURE AND TAXATION PREBUDGET REVIEW As the Budget is to life presented to the House in. ai few- days tribe, a review at tiiis juncture of the,.official figures relating to Government exjiendituro and taxation is not inappropriate (says a statement by the Associated Chambers of Commerce). The figures are disturbing in a number of particulars when comparisons are made. Government Expenditure From the Consolidated Fund, and Including Unemployment.

The above table shows how obstinate lire the costs of Government, and how ineffective in reducing total expenditure have been the considerable economies effected by the Government in particular directions. The total expenditure has not come down at all, but has actually increased iii 1938-34 by well over two million pounds as fcohipared with the previous year, and by over forir and a quarter million as compared with 1928-29. As the estimates of departmental expenditure will appear in the House at the Sariie time as the Budget is brought down, it will be generally expected that full cognisance will have been given to the need for considerably reduced Government expenditure, arid that the estimates will have been framed accordingly. The- existing burden on the people as a whole is further illustrated by the following table dealing with taxation expressed ris ii percentage of the national incorrie :

Taxation as Percentage of National Income £ millions National Pef-

Tlie table shows that the share of the national income taken by Government from the, people by means of taxes lias steadily increased from 111, per cent, in 1928-29 to 19 per cent, in 1932-33. Taxation relief in some form or other is fully expected of the Budget by the oyer-weigh ted public. They have tlie additional tax burden of local government rates, and while these are not the concern of the Budget, the fact- remains that local government taxes in New Zealand are very much higher per head than in Australia. The position with regard to general Government taxation (exclusive of local government) is set out in the following table:—

Comparative Government Taxation New Zealand. Australia. £ £

The table shows that at the same time as Australian taxation was reduced by £1 2s 5d a head, New Zealand taxation was increased by £1 0s 10d a head. Still further relief for the Australian taxpayer has now been announced, but so far the lot of the New Zealand taxpayer has been the sick heart of hope deferred.

1928-29 £ 24,176,000 1929-30 25,200,000 1930-31 ... 24,708,000 1931-32 ... 27,114.000 1932-33 26,316,000 1833-34 . 28,445,000

Income. Taxation. centage 1928-29 153.24 17.83 11.63 1929-30 146.52 19.47 13.29 1930-31 108.92 18,59 15.64 1931-32 101.76 17.43 17.03 1932-33 102.96 19.62 19.06 1933-34 * 21.48 * *Not available

1932-33 12 17 9 14 4 3 (Less reductions ' in 1933-34 1 2 5 1933-34 13 18 7 13 1 10