A LONG-AWAITED SURPLUS

New Zealand Herald, Volume LXXIV, Issue 22776, 9 July 1937, Page 10

A LONG-AWAITED SURPLUS

The New South Wales Treasurer has announced that the financial year which closed on June 30 produced a surplus of £131,920. The amount is not very great for a Budget of nearly £50,000,000, but it is very significant, for several reasons. It is considerably more than was forecast when the Budget was introduced last October, for Mr. Stevens predicted no more than £587-1 as the estimated balance of receipts over expenditure. He then recalled the deficit of £14,200,000 in 1931-32 to point the contrast between the state of public finance then and now. New South Wales is at last rid of the legacy from the Lang regime. For another reason the achievement is impressive. It was worthy of note when the Commonwealth Treasurer announced a surplus in the Federal accounts a few days ago that this result, and others preceding it, had been obtained after substantial relief had been given the payers of Federal taxation. As soon as.the Commonwealth accounts were balanced, the taxpayer was given the benefit. In New South Wales, an even more courageous course was followed. Taxation relief was given in that State in 1932-33, almost, immediately after the £14,200,000 deficit had been recorded. In "his Budget last year Mr. Stevens claimed that in three years taxation remissions and reductions of charges—railway freights, harbour bridge tolls and the like—had aggregated £12,400,000. Ho estimated the cumulative remissions to amount to £8,000,000 in 1935-36,' bringing the total for four years to £20,400,000. In face of this method in financial management, the Budget has been duly balanced. It is behind schedule, since under the Premiers' Plan it was supposed to be done by 1934 ; but in the encouragement given trade and industry by a lightening of the taxation burden lies justification of the policy followed in New South W»les.