The Waikato Times. FRIDAY, NOVEMBER 10, 1933. DOMINION BUDGET.

Waikato Times, Volume 114, Issue 19100, 10 November 1933, Page 6

The Waikato Times. FRIDAY, NOVEMBER 10, 1933. DOMINION BUDGET.

Despite the fact that a deficit of £2,000,000 is budgeted for, the Financial Statement delivered in the House of Representatives last evening by the Minister of Finance, strikes a note of optimism which reflects the general indications of return of confidence throughout the country. It is clear however, that the policy of restraint which characterised the budget of last year must apply to the present year. For the immediate present, however, taxpayers have the assurance that there will be no increase in taxation this year, and that the exchange rate will be unaltered at least until after the close of the export season. t - , —l,

Although a slight decline in revenue is expected there is a corresponding increase in expenditure of some £2,000,000, most of which is to be applied to constructive work. It might have been hoped that the expenditure on public works would be substantially increased. A certain swelling of the estimates has admittedly taken place, but this expenditure entails only a small proportion of new work, the bulk of the expenditure being absorbed in maintenance costs which have fallen more heavily this year owing to economies during the last two years. • ■ . .

One of the nfost important items in the Financial Statement, next to taxation, is unemployment finance. The burden which lies upon the whole community of contributing directly to the relief of the unemployed, is as Mr Coates has stated, heavier than in most other countries. Nevertheless it is a matter for satisfaction that the expenditure on this work should have been met entirely out of current revenue. , _,± A&d

Few countries are in as fortunate a position as New Zealand in this respect, and there is the consoling assurance that the ultimate diminution of the unemployment burden will leave us with definite assets instead of with a load of interest charges on loans. For the added reason that the £4,000,000 spent annually on relief work is cash revenue contributed by the community, there is the greater need that work undertaken should be constructive and permanent.

Any suggestion that the rate of exchange would be altered is given an emphatic denial. The need for the higher rate has been reaffirmed by Mr Coates in no uncertain manner, and he has deplored the unsettling-effect of persistent rumours regarding the alteration of the rate. Another matter of importance is the fact that an announcement regarding the setting up of a commission to inquire into the whole question of local body administration is to be made shortly. The burden of local government and local body expenditure is one which is generally felt to be unnecessarily heavy and the country will welcome any action by the Government to remedy the existing position.

Taken as a whole the budget is not sensational. It is cautious but at the same time has a more confident tone than its immediate predecessors. A deficit is in sight, but few countries have been able to balance their budgets, and if the rapid recovery which has followed the attainment of equilibrium in Britain, gives cause for envy, we have the knowledge that our deficit is small and largely a matter of financial adjustment.