NATIONAL ACCOUNTS

New Zealand Herald, Volume LXXI, Issue 21910, 20 September 1934, Page 16

NATIONAL ACCOUNTS

TRUE POSITION NOT STATED FORM OF BUDGET CRITICISED The opinion that New Zealand's financial position in the future is ex- ' tremely -uncertain, as a result of State commitments having been deferred, was expressed by Mr. L. W. Holt, lecturer in the accountancy department of Auckland University College, at the Auckland Creditmen's Club's luncheon meeting in Milne and Choyce's Reception Hall yesterday. The subject of his address was "The 1934 Budget." Mr. J. A. C. Allum presided. In reviewing the history of Now Zealand's budgetary policy of recent years, Mr. Holt said that although only two deficits had been shown, actually, if the full revenue position were taken into account, it would be found that the country had entered into a series of deficits in 1927 from which it had not emerged. Mr. Holt referred to the raiding of reserves, and said that while there was no objection to the practice in times of crisis, it should be made known to the public. For a number of years the form of the revenue account had been misleading and a true picture of the position had not been given. Taking the full revenue position into account, Mr. Holt said there had been deficits in 1927-i'S of £500,000; 1928-29, £1,000,000; 1929-30, £1,000,000; 193031, £2,000,000; 1931-32, £5,500,000; 1932 - 33; £4,000,000; 1933 - 34, £5,000,000; 1934-35, £2,500,000.

Mr. Holt criticised the defence vote for this year, and considered that the present system of direct taxation in particular must have a detrimental effect on trade and be a hindrance to recovery. Other problems which he contended would have to receive early attention were the Government's contributions to the State superannuation funds and the payment of interest on loans held overseas. f