Argus, 1928 (Anul 19, Număr special)
1928 / Număr special
1928 „A R G U S“ 27 Bursa din Londra. — Royal Exchange. Banca Angliei din Londra. — Bank °f England. ]F ][NANCE ]F ] N A N Ţ E EXPLANATORY STATEMENT OF THE GENERAL STATE BUDGET FOR 1928 General Considerations In the period of gradual consolidation in which we are at present the Budget of each year has a direct bearing on the point of evolution which the consolidation has reached. With the present Budget we close the sixth period in which expenses have been kept v/ithin the margin permitted by its revenues. The increase of these revenues has from year to year permited us to accord, more and more, to the public services the sufficiency of funds which they require and to proceed nearer and nearer to the realisation of normality in their working. It has also enabled us to make provision little by little for the burdens tion in a gradual manner of the burdens left by the War and to undertake also certain outlays to cover, in the shortest possible time, shortages provoked by the war and the needs which have arisen through the formation of united Roumania. The approach of the State’s finances to normal, however, should not permit us to delude ourselves into the belief that we have definitely consolidated our budgetary position. The efforts and sacrifices made by the country in the face of dislocations of all kinds resulting from the war, has permitted the rectification of a situation which threatened to imperil not only the country’s economic and financial position but the political situation as well. It has not been possible however to ensure the liquidation of all war burdens or to solve all the new problems confronting the country within its new boundaries. The result of the efforts made of recent years appears in the budget figures from 1922 onwards, which have increased from 1C.498 millions of lei at the former date to 51.153 in 1927, inclusive of the Railways. Postal Service and the General Pensions Office. We do not believe, however, that the State Budget can continue, under present conditions, to increase in the same measure which has characterised previous budgets. The arrest of inflation, the appreciation of the Leu, and the tentative stabilisation which has become apparent of late are responsible for the creation of a new economic situation which must be taken into account in the compilation of the Bud-ger. As long as the change in the fiduciary situation produces no change to normal in the economic situation in all its aspects, so long must the activities of all branches of productive life in the country be hampered to the extent that a reduction of their contributive capacity may result. There is however need for the provision of at least a restraining influence on the growth of the State revenues and hence a need for the prevention of increase in budgetary expenditure. On the other hand, the object of the new census is the revision of the bases of certain forms of direct taxation. The effect of this may, however, be such as to reduce the State revenues in the economic situation shown above, and it is natural that this has to be taken into account in the compilation of the Budget for 1928. The change in currency conditions and ths rise in the internal prices which has recently become manifest necessitates a gradual reduction in export taxes, while the recent modifications and those still to be effected in the regulations relative to alcohol will influence consumption and may cause a drop in the revenues derived from the taxes on spirit. Provision for this must be made in the new Budget. One the other hand, the necessity of introducing a normal policy of tariffs has necessitated tbe revision of the present Tariff for the adoption of a system more in harmony with, and better adapted to the real needs of the country, which shall serve as a basis for negotiations which we shall initiate for the conclusion of Commercial Agreements. If the situation arising from the War permitted the introduction of a Customs Tariff established by the decrees of the Legislature, a return to normal conditions demands that Parliament shall once more be given the right to decide our Tariffs policy. The new Tariff will be submitted to Parliament to this end. Decided as we are to maintain our Customs policy within the limits of a certain measure of protection designed to ensure the undeniable needs of '-•ur industries at the beginning of their development, we must nevertheless preserve a certain elasticity in the provisions we shall envisage as regards revenues from the Customs even if a reduction of taxes and an increase of commercial activity should partly compensate the reduction of the Tariff. Besides this, in spite of all efforts made of recent years, the State has not succeeded in settling all debts resulting from the War. War debts in France, the purchase of a good part of the private railways, the complete settlement of the Austro-Hungarian debts, and finally, compensation within the country for war damages not to mention the smaller burdens still in suspense ; all these questions await solution. Desirous of a speedy solution of all these problems, we must from the outset give the 1928 Budget that elasticity which will enable us to cover the burden we have accepted of liquidating as many as possible of the questions mentioned above. The financial conditions under which we have lived of recent years have not permitted any solution of the treasury problem, o important in the execution of a Budget. In the absence of funds which would permit us to meet expenses which cannot await the collection of State revenues. the Budget must be so constructed as to allow for increases during its execution which shall take the place of these funds. Responsabilities so lightly accepted in past years, obligations assumed without funds to meet them and undertakings entered into beyond the immediate possibility of execution have rendered the situation still more difficult. A considered oolicy is therefore necessary that the State may not be rendered impotent to meet its due obligations. In addition to this, in the absence of any special resources with which to maintain an extraordinary budget, and in order not to delay the fulfilment of such needs as may not be delayed — national defence, schools, railways etc. — a part of our ordinary resources has had to be reserved for these needs: the surplus of revenues collected in each year. This policy will have to be contineud up to the time when other resources are available and even after that time arrives, to meet the needs of national defence which cannot be met in other directions. The 1928 Budget must take these necessities into account. We must here remember the need to liquidate the outstanding obligations assumed under previous budgets. The fact that no cover was provided for them increases the difficulties of the Treasury and adversely affects the credit of the State. Finally, the efforts made by the country for the recovery of its finances from the War up to date and the results thus obtained permit us to foresee, at a future date more or less near, the possibility of u edit operations of some importance in conditions corresponding with our economic and political situation. The success of such an operation however and the confidence which is required to translate it into fact depends, in the first place, on the condition of our internal finances. Such an operation cannot be contemplated without a considered budget, based on real and certain revenues, with an expen-diture appropriate to revenue and an effective control thereof, to prove our financial solidity. These are the reasons, therefore, why the 1928 Budget must be one of a stationary character based on the figures of the 1927 Budget, which will permit us to direct operations towards the development of the future revenues of the State, to liquidate our last charges and to introduce full order where it is lacking. Our policy must be this for the moment even if. under the circumstances touched upon above, it is possible to effect a later development of the State’s finances. The need of an equilibrised Budget at any cost does not allow us to take the risk of a failure to realise our forecasts. If these should prove too modest and revenues coFected are found to be greater than anticipated, then there will always be time to direct such eventual surpluses to the quarters most deserving of them. Total amount of Budget The total of the State Budget is 38.350 millions of lei, made up as follows. This represents, homever, an increase of 3,710 millions as compared with the preceding Budget. How is this increase iustified ? On broad lines, the estimates, for 1927 were 34,640 millions. Revenues collected during the first nine months of the year totalled 24.430 millions of lei. Experience of proceding years has shown that the collections of the last