The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-08-29
Sweden Shows Way in Handling
Accounts Of the Government
Notionol Budget Accounting on Approved
Lines Thot Reveal Actual Stotus

the administration q revenue and
expenditure o. loans. the handing
Of the state loan policy and the
management Of the national debt.
Taxation Avoids Loan.
Proceeds Of loans must Be used
only for effectine an Increase Of
the state capital assets Accord
ingly. current governmental ex-
penses are met BY taxation with
out recourse TO loans. and prscti-
cally al the national debt Of swe-
den has been issued for capital
expenditure which il revenue pro-
ducing. II IA OF course also true
that substantial sums have been
used for this purpose from ordi-
nary taxation. During the depres-
sion years $3.50 public works
were financed by loans, although
not al these works were them
selves productive. But these loans
are being paid off within . few
years. chiefly by means Of death
duties, which are earmarked for
that special purpose.
Budget estimates are always
made to balance. II revenue from
taxes. etc, and from productive
funds does not cover expenditure,
the difference In made up from
various capital sources available
balance Of SURPRISES from previous
years.. Never IL recourse had TO
losns for the mere expense part
OF the budget.
The budget system deals seps-
rstely with the excess or deficit
on the various items OF revenue
and expenditure ~ compared with
the estimates. Most OF these ex-
cesses or deficits are carried 70
or charged against q TREASURY
RESERVE FUND which Is de-
signed to be at the same time a
working reserve fund and a fund
for adjusting budget deficits and
SURPRISES. Loans do not enter into
IL at all. Expenditures to be met
out Of loans are dealt with by the
National Debt Office.
Three Appropriation Types
Appropriations are OF three
kinds-fixed. approximate or re-
served" The fixed cannot be ex-
ceeded. approximate may be,
reserved" ones may be carried
over into q second year after they
are granted. Exoesses from re-
served appropriations are set free
for other purposes. They incease
the treasury reserve fund, which
may be lowered IL too large by
transferring some Of II to the
budget to provide for capital ex-
penditure.
The National Debt Office can
keep money on account, and If O
balance is on hand from previous
loans or from surplus revenue
funds, IL is in position TO pro-
vide money by drawing on such
balances without taking up a new
loan.
The STATE BUSINESS EN-
TERPRIsEs are conducted more
or less a. independent business
concerns, but they must deliver
the yearly surplus to the treasury.
Interest on invested capital is not
charged directly to the enterprise
concerned. Charges for deprecia-
ton land this is Of supreme i'm
portance) are included In the
working expenses OF the enter
prises themselves, the amounts
being carried TO special deprecia-
ton funds which defray the costs
Of renewal Of buildings. material,
etc. New capital expenditure il
specially voted and accounted for
in the budget. Interest on ma
tional debt is taken care Of among
the expenditures proper of the
budget. but ia clearly comparable
to the corresponding revenue part
Of the budget They no doubt had
adequate reasons for this interest
treatment.
Subject or Administration
On the whole. we must admire
this budget system. II is without
doubt unique among all govern
mental budgets and Ia thousands
Of miles ahead of anything we can
show either In the state or the
nation. In fact, we follow no other
system than that we bunch every
thing we take In and take out all
we can without bothering what II
Ia all about. One Of the western
state governors In reputed to have
said II would be too hard for him
to think about IL.
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