BRITISH PUBLIC FINANCE

New Zealand Herald, Volume LXXV, Issue 22961, 12 February 1938, Page 12

BRITISH PUBLIC FINANCE

The debate in the House of Commons on the growth of public expenditure and the increasing weight of taxes and rates found the British Government ready to accept a private member's motion urging it- to do everything possible to lighten the burdens. That acceptance of responsibility contrasts strongly with the devil-may-care attitude assumed by the New Zealand Government when taxed with the ominous rise of expenditure and taxation in this country. The Financial Secretary to the Treasury said the British Government was "alive to the dangerous effect of high taxes." In New Zealand, on the other hand, Ministers have actually argued that high taxeu are an index of prosperity. Yet, with all its accumulated wealth and vast trade, Britain is still not levying taxes at the dangerously high level reached in New Zealand, in spite of the extraordinary demands made for rearmament. As was pointed out in the Commons, her current Budget has taken on wartime proportions, but, with 10 months' returns now complete, appears likely to realise the estimates. Expenditure has certainly run ahead of expectations, but the real position is not yet clear, because the defence loan moneys have yet to be brought to account. On the other hand, the inflow of revenue promises to surpass the estimates, showing an increase to February 8 over the corresponding period last financial year of £35,000,000, whereas the increase budgeted for the corpplete year was £38,400,000.' With seven weeks ,of ordinary revenue to come in and the bulk of income tax at a higher rate •still to bo collected, the position to be disclosed on March 31 should be reassuringly sound. The British taxpayer is taking the strain although, as his own Government is wise enough to admit, continued demands at the present rate are apt to prove exhausting and should be abated as far and as soon as possible..