B—6

1950 NEW ZEALAND

FINANCIAL STATEMENT (In Committee of Supply, 24th August, 1950)

By the Right Hon. S. G. Holland, Minister of Finance Mr. Chairman, — In this, the new Government's first Budget, its plans for dealing with the financial and economic affairs of State are dealt with under various headings. An indication of its contents can be given by saying—(l) There will be a very big increase in defence expenditure due to the introduction of compulsory military training; and the costs of the Korean expeditionary force will have to be found. (2) In addition, we have to provide out of current revenue for substantial increases in expenditure on education, social security, health, and hospitals. (3) Full provision is made for a vigorous programme of capital works such as hydro-electric schemes, housing, land settlement, new railway rolling-stock, telephones and telegraph extensions. (4) Notwithstanding these additional costs I am happy to be in a position to say that — (a) We will balance the Budget. (b) All the greatly increased costs will be met without any increase in existing rates of taxation. (c) On the contrary, there will be some relief from present taxation burdens. (d) Encouragement, incentives, and rewards for thrift and independence will be provided under a number of headings. (e) There will be no creation of fresh Reserve Bank paper money or credit to finance our current works programme. (/) A further instalment of freedoms is provided for. I*—B 6