LABOUR'S THIRD BUDGET

New Zealand Herald, Volume LXXV, Issue 23092, 18 July 1938, Page 8

LABOUR'S THIRD BUDGET

If present expectations are realised, the Labour Government's third Budget will bo presented in the House of Representatives on Wednesday evening. By New Zealand standards, its appearance will be early, although over three months of the financial year to which it relates will have elapsed. In Britain the Budget always appears within three or four weeks of the opening of the financial year, thus enabling taxpayers to reckon at an early stage their obligations to the State, and take them into account. Mr. Nash has been less dilatory than many of his predecessors at the Treasury. His first Budget appeared on August 4, 1936, although last year's was delayed until September 28, owing to the Minister's protracted trade mission overseas. No relief from the heavy burden of taxation is anticipated in this year's Budget. Indeed, having to meet the many bills incurred by his colleagues' extravagant policies, Mr. Nash may find it difficult to keep expenditure within income for ordinary purposes, apart from borrowing for public works and housing. Outside this year's Budget, but involving heavy commitments before the 1939 Budget can appear, lies the Government's social security scheme, which it is planned to inaugurate on April 1. At the least it would appear to be necessary to abolish the existing unemployment taxes and levy and substitute as from April 1 the social security contribution of Is in the pound and the annual registration fee of 20s. Contribution and fee are estimated to yield £8,000,000 a year toward a scheme costing £17,850,000, with extensions added by the Prime Minister. The whole of the cost will not represent new charge# on the Budget, but substantial additional revenues will certainly havo to be provided. At; the same time provision will require to be made for the ablebodied unemployed, whose existing fund will be abolished, and who are not included in the social security scheme. If Mr. Nash faces up to these imminent financial problems, as he shoifld do, the Budget should in this respect prove exceptionally interesting.