BUDGET BALANCED

Chronicle (Levin), 11 July 1949, Page 5

BUDGET BALANCED

(N.Z.P.A.-

-Reuter

Mr. Chifley Pleased With Australia's Finances

, Copvriaht)

Received Sunday, 10.50 p.m. CANBERRA, July 10. Australia was well buttressed against the possible efl'ects of finaneiai .disturhanees overseas, said Mr. Cliifley toniglit in his weekly - broadcast to, . the nation. Mr. Chifley said tliat for the* seeond financial ye^ir since the war, tlie Australian Budget • had been baianced. The total re venue. for 1948-49 was £535,000,000 whicli was £43,000,000 above- tlie Budget estimate and reflected the rapid rise during the year in inconie, trade and business turnover. The ' national inconie vvas about £2,00,000,000 greater than in 1947-48, wages and salaries £150,000,000 greater and imports £70,000,000 greater.- The total expenditure was £529,000,000 which was £19,000,000 above' the Budget estimate. That left a small surplus which had been plaeed in tlie ! war gratuity reserve. "The fact that the Australian Budget has been baianced again, makes a great improvement in our financial position since the war years, ' ' said Mr. Chifley. "It means, in the first place, that there is no longer a gap between revenue and expenditure as there was in the war years, and for 'which euormous sums had to be borrowed. Be.tween 1939 and 1947 a total of £1,580,000,000 was borrowed for war and post-war expenditure. Today we have to find £50,000,000 vearly for interest and repayment of the wai* debt. Secondly, it has been possible to make a series of reductions in taxation which was raised to verv high levels during the war. The fiftii reduction m direct taxation came into qjfect a few davs ago. Thirdly, substantiaJ reserves have been made against future expenaiture eommitments. The national welfare fund is one example. It now has a credit balance of nearlv £100,000,00u to provide the guarantee that pensions, child endowment, hospital benefits and the like, can at all times be^ paici. Allowances to people put out of work bv the coal strike, are being met from this fund. There is also the war gratuity reserve with a credit balance of £29,000,000. It is being built up against very large payments of war gratuity at £75,000,000, most of whicli will be made in about two years' time." Mr. Chifley said economic conditions had favoured Australia for some time but there were uisturbmg signs in the future outlook. He referred to_ the dollar troubles being experienced by Britain and said that in Ameriea there had been a marked down. turn in employment and business activities which was. already havmg aclverse eftects in other countries. "Wa great'ly hope this trepd will not become worse 5eeause a depression in Ameriea, would be a calamitv for the world,'-' coneluded Mr. Chifley.