HUGE BUDGET

Evening Star, Issue 24290, 3 September 1942, Page 4

HUGE BUDGET

AUSTRALIAN WAR EXPENDITURE OVER FIVE HUNDRED MILLIONS CANBERRA, Sept. 2. A recoul Budget, providing for a total expenditure of £549,492,000, was introduced by the Federal Treasurer (Mr J B. Chifley) in the House of Representatives to-night. Of this amount, £440,000,000 is to be spent on the war. it is proposed to finance this huge sum principally by loans. Taxation and other receipts during 1942-43 will, it is estimated, provide £349,000,000, leaving a deficiency of approximately £300,000,000. No alteration in income tax is announced, but the entertainment tax will bring in £3,250,000. and additional Customs and excise revenue will amount to £14,200,000 in a full year. Details of this tax, which presumably will bo imposed on tobacco and liquor, will bo announced later. The entertainment tax will commence at 3d in an admission charge of Is and increase by 2d for every (id, when an admission charge exceeds Is, up to ss. Above 5s the increase is 3d for every 6d. “ Approximately 25 per cent, reduction will apply to ‘ flesh and blood ’ shows this year,” said Mr Chifley. ‘ The Government faces the problem of finding £300,000,000, which is the gap between the estimated expenditure and the estimated revenue. The excess spending power of tho people must bo transferred to the Government to . pay the fighting forces and for the labour and materials used in producing munitions and war supplies. “ While relying to a large extent on the voluntary efforts of the people, the Government is resolved that its payment will not he evaded,” Mr Chifley said. “ Last year we received £120,000,000 from public loans. If we double that amount this year we receive £240,000,000, which is four times that received in 1940-41. This would leave £60,000,000 provided from savings bonds and savings certificates. This is about the British rate of contributtions to small savings, and with our higher wages it should be capable of accomplishment. The expenditure for the Army, Navy, and Air Force will amount to £415,000,000. POST-WAR DEVELOPMENT EXPANDED PRODUCTION AND INCREASED POPULATION (Rec. 8 a.m.) CANBERRA, Sept. 2. “ The Government lias been giving close consideration to the vitally important question of post-war reconstruction,” said Mr Chifley when introducing the Budget in the House tonight. “ The Government has accepted the recommendation of the Calbinet subcommittee that it is necessary to invest the Commonwealth Parliament with legal powers sufficiently wide to save tho nation from the chaos which is likely to be tho result unless the Commonwealth Parliament is able to deal with post-war reconstruction on a national basis. “ Broadly,” said Mr Chifley, “ our post-war aim must be tho physical development of our country, linked with expanded production and increased population. By these means employment will be assured to our people and security to the children of Australia. Tim power to control prices and production is an essential adjunct to any progressive policy of physical development. Such control is possible to-day only because of war powers. The present powers would disappear with the war, and they must be continued by constitutional alterations. The Government therefore proposes to_ introduce a Bill to achieve the required amendment to the Constitution.”