The Wanganui Chronicle FRIDAY, MAY 1, 1936. THE PUBLIC ACCOUNTS

Wanganui Chronicle, Volume 79, Issue 102, 1 May 1936, Page 6

The Wanganui Chronicle FRIDAY, MAY 1, 1936. THE PUBLIC ACCOUNTS

S.MALL deficit is better than a large surplus in the public accounts, because when there is a large surplus the Government departments fall into extravagant ways. Nevertheless, deficits are depressing, and surplusses are heartening for all the lurking dangers which they encourage. New Zealand is to be ! congratulated upon having achieved a Budget surplus which Mr. Nash, as Minister of Finance, puts down at £270,000. This result is heartening because it indicates that the country is riding on an even keel financially. It is the duty of the Government to maintain this evenness and so permit the recovery movei ment to have full play. If the Government will do its part and I not overdo that, part, then the fair wind which is now blowing will take the Ship of State well on its way. Governments have a habit of taking credit for improved economic conditions, and lheir opponents saddle them with the responsibility for adversity. This behaviour evens matters out as between the Government ' and its opposition, but neither trade depressions nor revivals ' are brought about by passing Aets of Parliament. If Parliament could cure the ills of humanity simply by talking about them, I then there would be no need for Parliament to take action at all. I because just as much talk goes on outside of as inside Parlia- | ment. All that Parliament can do is to bring about a variation I in the distribution of the national income. There is no gain- ' saying that Governmental intervention in the matter of redistributing the national income can work for the general wellbeing, but the point to bear in mind is that the national income must first be produced before it can be distributed. The old saying that one must catch the hare before starting to cook it. applies as much in political as it does in personal affairs. Revenue received during tli last three years has been as Year. 1934 £23,492,749 1935 26,126,094 1936 26,170,000 approx. I-Tom the standpoint of revenue, then, it does not appear I that there lias been any great increase in the Government's income. It amounts to only £54.000, and yet Mr. Nash is able to announce tt surplus of revenue of approximately £270,000. The details of how this happy result has been accomplished will be I uf interest. Comparing the three general, classifications oi. income, the comparison shows that, despite the similarity of the totals, there has been a considerable measure of improvement during the year. Revenue source. 1934. 1935. 1936. Taxation .. . £17.059,830 £20,177.609 £2.1,556,000 Interest .. 2.863.856 2,930.245 2,719,000 i ither Receipts . 3.569,063 3.018,242 1.895.000 It is to be seen that receipts front taxation have gone up by £4.500,000 in the three years under review. This is the best index uf the Dominion's improved economic condition. Ini terest receipts have receded, while “other receipts” have declined by some 50 per cent. The decline under this heading, however, is more apparent than real. During the year reserves were drawn on to the extent of £2,000,000, while miscellaneous receipts rose from £196,048 in 1934 to £1.628,777 in 1935. The increase under this heading was due to the “profits” on the sale of the gold taken from the trading banks. These “profits” amounted to £1.364,000. AVhen this windfall is taken out, then, receipts under miscellaneous were £264.777. The decline under the general heading “Other Receipts,” I lien, is not a real decline, and provided the miscellaneous item has not been unduly enlarged, represents a fairly normal income. Expenditure during last financial year was estimated in the. i Budget at £25,210,8’22. The net expenditure for the year ; amounted to approximately £25,900,000. Finding that the revenue was coming in satisfactorily, and mindful of the fact I that a general election was pending, a7| per cent, restoration of salaries and pensions, antedated to August. 1. instead of October I. involved the sum of £140,000. which would bring up the esti- ! mated expenditure to £25,350,822. Actual expenditure exceeded this sum by £549.178. an overspending of 2.17 per cent., which I is close enough. The Government departments have therefore kept well within their estimates and arc to be congratulated upon their success, thus making the task of the Minister of Finance a pleasant one.