BALANCING THE BUDGET

Wanganui Chronicle, Volume 73, Issue 424, 15 November 1930, Page 13 (Supplement)

BALANCING THE BUDGET

When times are bad the most obvious course for a Government is to reduce taxation in order to leave more money- in the pockets of the people and thus to help them to face their difficulties. This was the policy that was actually carried out in Britain in the days of Gladstonian finance, but the great extension of governmental activities since the general trend towards socialism has taken place has made Ministers too cowardly to attempt to adopt this course. Reduced taxation probably, though by no means always, means reduced revenue and consequently reduced expenditure. But so many people are dependent to-day on government employment, that the slightest hint of reduced expenditure means a loss of votes and this is the one thing that politicians refuse to face. Tn both Australia and New Zealand attempts are being made to balance the Budgets by piling on taxation with the minimum reduction in expenditure. The difficulty of this procedure is that after a certain point has been reached increased taxation fails to bring in greater revenue. Tvr Coommonwealth Government hoped to balance its Budget by increases In Customs duties, but. very soon found that the receipts were less than the estimates and more taxes have been piled up, though the hope of balancing the Budget has been abandoned. Tn this Dominion similar conditions prevail. though our state is not as bad as that of Australia. For oxamp«-. the Government thought to raise more revenue by increasing the totalisator tax, but for the two months August and September the revenue has fallen from £52,508 last year to £48.673. We can only roach safety bv compelling the Government tn spend less and tn reduce taxation, instead of increasing it.’ —Taranaki Herald.