FEATURES OF THE BUDGET.

New Zealand Herald, Volume LIX, Issue 18170, 16 August 1922, Page 8

FEATURES OF THE BUDGET.

There are soma interesting and valuable features in the Financial Statement which are liable to be overlooked in the profound disappointment that will be caused by the realisation thai-, the Prime Minister is budgeting practically for the same expenditure, and apparently for the same taxes, as last year. Mr. Massey fails alto* gether to meet the call for administrative economy, but he grapples with the details of a complicated financial situation in a manner which is thoroughly sound and inspiring, and which in other circumstances would have made his Budget a remarkable and striking one. A complete rearrangement of sinking funds is very necessary, and Mr. Massey appears to have explored the subject thoroughly. Unfortunately the benefits to be derived, although they are substantial, are years distant. The plan for reducing the war debt is of more immediate concern. There was in the War Expenses Account at March 31 last a sum of £3,710,000. This includes the £507,000 received on account of German reparations. It is proposed to draw upon this to the extent of three millions, to get an additional two millions of unused balances from other loan accounts and to reduce the public debt to the extent of five millions by the purchase of tax-free bonds. .Thus, by the one operation the public debt will be reduced and the taxable capacity of the country increased, for it is no small part of the Government's financial troubles that it pays out every year about two and a-quarter millions in interest that gives no return in taxes. Another important and commendable proposal is to draw £1,125,000 from the accumulated surpluses to strengthen the Public Works Fund and thus lighten the weight of fresh borrowing which must be undertaken if public works are to be continued on the very moderate scale of the past year. This is the chief purpose to which the accumulated surpluses should have been put from the date of the armistice. Even now much greater use could be made of these funds for public works if Mr. Massey had the courage to enforce departmental economy until he could balance his Budget at the 5s income tax recommended by the Taxation Commission. As it is, the surpluses are being steadily drawn upon to *pay for the riotous departmental waste in which we are indulging. There was £280,000 to meet last year's deficit, something like two millions are provided in view of an expected deficit in the current year, and £4,343,152 are being held in reserve in case the next Budget, and the next, also fail to balance.