THE BUDGET

Press, Volume LXXIX, Issue 23964, 3 June 1943, Page 4

THE BUDGET

PRESENTATION IN HOUSE TO NIGHT TAX INCREASE THOUGHT UNLIKELY From Our Parliamentary Reporter N WELLINGTON, June 2. Increased war pensions and some relief for hospital boards are expected to be among the features of the Budget, to be presented in the House of Representatives to-morrow night by the Minister of Finance (the Hon. W. Nash). He will explain more fully the Government’s borrowing, programme to finance the war, supplementing the information already given about this year’s war loan of £35,000,000. The opinion is growing that there will be no increases in taxation, although the possibility of a supplementary Budget if generous support is not given by the public to the loan is discussed in some quarters. Last year’s Liberty Loans amounted to approximately £28,000,000, and the increase this year is to meet increased war costs. It has been predicted that the War Expenses 1 Account expenditure this year will be not far short of £150,000,000, compared with last year’s estimate of £133,000,000, and. an actual expenditure of £144,000,000. A large part of the overspending of the estimate last year was caused by reciprocal aid to United States forces, and this item will probably bulk large in the plans Mr Nash has to make. No portion of his speech is more keenly awaited by members than that dealing with lease-lend matters generally, and with the discussions he had while in London. The war loan will have two objects, first to provide money for war expenses, and second to implement the stabilisation policy by draining off surplus purchasing power which would otherwise exert an inflationary influence. An important part of the Budget will deal with the stabilisation policy, which will affect all other portions. Mr Nash is expected to discuss the collection of income tax at the source, and it is possible that some definite proposal may be put before the House.