MR. NASH ON THE BUDGET

New Zealand Herald, Volume LXXIII, Issue 22469, 13 July 1936, Page 8

MR. NASH ON THE BUDGET

Within a few weeks of producing his first Budget, the Minister of Finance has let fall the remark that he is in favour of balancing budgets. At this stage his statement is probably significant. A balanced budget is always desirable so long as undue strain is not put on the taxpayer in achieving that end. Mr. Nash showed he had the fiscal problem in mind. "If we close up taxation from one source," he said, "we have to obtain it from another. That is necessary if you are going to balance budgets, and I am in favour of doing that." This was said in answer to racing delegates who had drawn attention to the weight of taxation on their sport. In one sense Mr. Nash's is a very sound statement. A balanced budget is one of the strongest safeguards against inflation although, if too much is demanded.of the taxpayer, its influence tends to be deflationary and depressive. Neither is the collection of revenue sufficient to meet expenditure the only method of balancing the Budget. A start can be made at the other end, "by controlling State spending so as to keep it within reasonable limits. In that way Mr. Nash can avoid placing crushing burdens on a public already overtaxed. If he keeps a firm hand on expenditure, he can make a real contribution to recovery. He will also, while balancing his Budget at a reasonable figure, be helping to produce that balanced national economy of which he so often speaks. As it is, too large a proportion of the national income is being absorbed by the State, a factor that is disturbing the economic equilibrium in many directions. The policy of the Labour Government appears likely to aggravate this trend. If Mr. Nash can check the movement by controlling expenditure, he will do the country a great service while making easier his own task of balancing the Budget.