BALANCING THE BUDGET

New Zealand Herald, Volume LXVI, Issue 20323, 2 August 1929, Page 15

BALANCING THE BUDGET

LARGE INCREASE OF REVENUE

ADDITIONAL EXPENDITURE.

POLICY RECAPITULATED

[BY TELEGRAPH.' —SPECIAL HEPOPTER.] WELLINGTON. Thursday.

A forecast of tho results for the current financial year was given by tho Prime Minister at tho conclusion of his Budget speech. He stated that before having recourse to additional taxation, tho estimates of expenditure were most carefully overhauled with a view to reducing them to a minimum consistent with tho maintenance of the existing services. Increased debt-charges and other rigid items call for an increase under permanent appropriations of approximately £700,000, but under annual votes tho reductions ho had effected had kept tho increase over last year's expenditure down to £30,000. At the same time tho itoms of revet apart from taxation, were also scrutinised with a view to seeing that all legitimato recoveries and departmental receipts will be brought to account. In this connection, Sir Joseph Ward mentioned that tho Main Highways Account is paying no interest on a portion of tho capital borrowed for construction purposes. This ho proposed to adjust. Then there is due to tho Consolidated Fund some accumulated interest on enemyproperty moneys, which can bo paid in this year, and also certain unclaimed moneys in tho hands of tho Public Trustee. It was the practice to pay such unclaimed moneys into tho Consolidated Fund, but latterly tho receipts have been held up owing to a technical defect in the Public Revenues Act, which will bo remedied. Summary o! Estimates. Tho estimated results for the year as given by the Prime Minister compare as follows with the actual results for last year 1928-29. 1929-30. Actual. Estimate. Increases. Revenue £23.599.676 £25.172,000 £1,572.324 Expenditure: Permanent 16,244.597 16,916,000 701,103 Annual . 7,932,331 7,964,000 31,669 24,176,923 24,910,000 733,072 Balanco £577,252* £'262,000t £839.252 'Excess of expenditure. +To provide for supplementary estimates and contingencies. Estimates o! Revenue. Details are given of tho estimated revenue, tho actual results for last year being shown for comparison:— 1928-29. 1929-30. Actual. Estimate. Customs . • . . £7,954,252 £8,400,000 Beer duty .. . . 611,48-1 600,000 Motor taxation . . 1,243,577 1,412,000 Stamp and death duties 3,575,720 3,614,000 Land tax .. .. 1,140,321 1,493.000 Income tax . . . 3j310,877 3,400,000 Interest on— Public moneys . . 760,035 820,000 Railways . . . . 2,331,335 2,450.000 Post and Telecrraph 428,000 480,000 Public Debt Fund 995,202 995,000 Other receipts . . 1,248,870 1,-178,000 Totals . . . . £23,599,676 £25,172,000 Motor taxation is earmarked for specific purposes and is not available to meet general expenditure. The Government's Policy, In conclusion, the Prime Minister said his statement covered most important policy questions. "The measures proposed to ensure a stable finance for tho annual Budget and the more far-reaching measures dealing with railways, landsettlement and public works will, I consider, give effect to the mandate tho people of tho Dominion gave to tips Government. To sum it all tip, the cardinal points of tho Government's policy are:— (a) To take immediate steps to obtain a balanced Budget, as this is a matter which cannot wait for the fulfilment of the more far-reaching proposals; (b) to provide a permanent cure for the unemployment difficulty and pave the way for decreases in the rates of taxation, by increasing the prosperity of tho Dominion on a solid basis through vigorously fostering land settlement; (c) to provide all tho capital necessary to enable the State Advances Office to cope with the demand for loans for development of farms and the building of houses for workers; (d) to accelerate tho completion of tho trunk railway lines in order that these unfinished works may be brought into operation and made interest-earning end at tho same time provide more work; (e) to deal with the present unsatisfactory financial position of the railways and institute a comprehensive system cf coordination in transport, in order to check the present dangerous drift into economic waste, which otherwise will undoubtedly impose greatly-increased burdens on tho taxpayers. Fundamental Reforms. "It will, I think, be generally recognised that there has been little delay in formulating and initiating these reforms, in view of tho short period I have had to investigate the country's affairs sinco taking office in December, but the same industry and application will now bo applied to the vigorous administration of the policy measures I have outlined, in order that tho beneficial results I confidently expect will be realised at an early date. "As regards tho financial and economic position generally, 1 am glad to say that the outlook for our primary industries is good and amplo capital is available to finance trade and industry. Internally, our favourable overseas Irade balance has not yet reflected its full value and this phase, unfortunately, is concomitant with the unemployment difficulty, a difficulty that I venture to predict will be cured only by a vigorous administration of the fundamental reforms the Government has in hand."

EARTHQUAKE DAMAGE.

RESTORATION BY STATE.

NO ESTIMATE OF COST.

[BY TELEGRAPH. —S) ECIAL REPORTER. 1 WELLINGTON. Thursday.

No estimate of tho cost to tho State of the repair of earthquake damage was given by tho Minister of Finance, Sir Joseph Ward, in tho Financial Statement. Sir Joseph said it was impossible at this stage to estimate what amount would be required to restore the damage to property, but it was probablo tho relief funds would "only touch the fringe." The restoration of the districts in roads, bridges, railways and public buildings would be a work of great magnitude, involving heavy expense to the Government Attention would first bo given to making tracks as temporary means of access tc> the settlements at present cut off as a result of the calamity. The Main Highways Board was arranging to reopen main roads where possible without delay, and where this could not he done steps were being taken to open or exploro new routes to the main centres in the area affected. Tho restoration of public buildings would also bo carried out as quickly as possible. As a desire had been expressed by local authorities to contribute toward tho relief funds, legislation would be introduced to validate such grants by local authorities, including harbour boards, i Grants by other public institutions, such as savings banks, would be similarly pro- i vided for. j