Le Nord : revue internationale des Pays de Nord - 01.06.1938, Page 146
i38
LE NORD
operation in order to strengthen the
forces for peace.
For the rest the Speech was
mainly concerned with present eco-
nomic, financial and social pro-
blems. A noteworthy passage in it
dealt with the economic prospects
for the near future and with state
measures to meet a possible bus-
iness depression. »Our country,«
the King said, »is still in a good
economic position, and economic
conditions in Sweden give no reason
for expecting a turn to the worse.
But decreasing activity within
foreign business spheres with which
our own are connected makes the
future uncertain. Prudence and
earlier experiences impose upon us
the duty not to meet that future
unprepared. There is no lack of
evidence as to the increased strength
of our economic undertakings. My
hope is that private business will
use this strength in order to coun-
teract falling employment in case
of a general decline in business. The
state must anyhow be prepared, at
any sign of serious recession, to ap-
ply measures at an earlier stage than
previously to maintain employ-
ment and the people’s purchasing
power.«
Following this up, the Govern-
ment submitted a Bill asking the
Riksdag to vote special supplies to
meet a crisis. This Bill was adopt-
ed, and thus an important novelty
was introduced into Sweden’s un-
employment policy. The appropria-
tion for this grant was this first
year 257 million kronor, which sum
the Government may use to finance
public works immediately if and
when a depression sets in. Thus the
money will only be applied when
economic conditions require it; but
on the other hand the Govemment
has the power to set the machinery
in motion without delay.
The general state Budget for the
financial year 1938—39, as finally
adopted by the Riksdag, shows ex-
penditure 1,416 million kronor. Ex-
cept for the extra appropriation for
immediate defence measures, the ex-
penditure is covered by ordinary
revenue without changes in taxa-
tion or otherwise.
This Budget presents an impor-
tant novel feature in regard to the
arrangement of the various items.
A strict division has been made
between current expenditure and
capital expenditure, corresponding
to a division on the income side of
revenue from taxes, duties and other
ordinary sources on one hand and
proceeds from loans and capital
resources on the other. Beginning
with the next fiscal year, which
commences July Ist, two budgets
will in fact exist, one working cur-
rent budget and one capital budget.
The idea behind this arrangement
is, in addition to facilitating at
every stage a clear survey of the
financial position of the state, to
draw up the budgets in such a way