THE NATIONAL ACCOUNTS.

Taranaki Daily News, 15 April 1935, Page 4

THE NATIONAL ACCOUNTS.

The statement of the Minister of Finance that the figures for the last financial year reveal a substantial surplus is very satisfactory. Mr. Coates has not given the details of the returns, and his reticence in this regard raises again the question whether the practice in New Zealand of withholding such information from the publid until a post-audit of Treasury figures has been completed is in the best interests of the public. The Minister has stated that the surplus is to some extent due to “windfalls,” that is to say from sources that must not be relied upon as recurrent. Speculation has arisen as to whether the windfalls referred to are profits made by the Reserve Bank on the sale of gold or are chiefly larger collections of death duties than were expected. The principal increase in ordinary revenue has been revealed in the periodic returns published during the past financial year. Receipts from Customs duties and sales tax have shown an expansion each quarter that indicated in turn some recovery in the Dominion’s internal trade. Mr. Coates stated the surplus had enabled the Government to make a material reduction in the Budget losses of 1932 and 1934 which amounted to over £2,800,000. Until further particulars are made available the Dominion’s financial outlook cannot be understood, but taxpayers will be most concerned to ascertain whether there is any likelihood of a reduction in taxation during the current Budget year. The surplus realised has been obtainable by the imposition of emergency taxation designed to bring back stability in the national accounts, but while this was the first necessity the strain involved has undoubtedly limited enterprise and thus contributed to an increase in unemployment. It is to be hoped that the Minister of Finance will be enabled before long to amplify his guarded statement. While the improved position is welcome, it is future taxation demands that are the chief concern.