NO EXTRA TAXATION IMPOSED

Gisborne Herald, Volume LXX, Issue 21112, 4 June 1943, Page 2

NO EXTRA TAXATION IMPOSED

SECURITY BENEFITS INCREASED HIGHER PENSIONS FOR SERVICEMEN YEAR’S WAR EXPENDITURE £148,000,000 (P.H.) WELLINGTON. Juno 4. The financial statement presented to the House of Representatives last night by the Minister of Finance, the Hon. Vi . Nash, was anything but sensational. In broad outline it differs remarkably little from that of last year and where it does differ it is in the matter of concessions rather than further imposts. What will most impress the great majority oi people is that, for the first time for some years, there is lo he no increase m taxation, direct or indirect. On the other hand increased, payments are to he made to social security beneficiaries. The age benefit is raised to 32/(1 • a-week, the-family- benefit to- -7/6 per child, and the-widow’s benefit to -25/- and 30/- where there are children. A controversial point is dealt with in the matter of the payments to hospitals in respect of. patients’ fees. In future the social security fund is to pay 9/- per day instead of 6/-, thus giving some measure of relief to ratepayers. The Government’s proposals for soldiers’ pensions are outlined. These provide for a payment of £3, instead of £2 a week, for disabled ex-servicemen, with an economic pension of £l/15/- and wives.!and children’s allowances which bring the - total payments-to ati ex-serviceman with a wife and two.children to £6/10/- a week. Pensions for soldiers’ widows are increased by 10/- a week and economic pensions are raised to 20/- and 25/- where there are children. The Budget generally is, of course, dominated by war finance. The estimated expenditure from the war expenses account at £148,000,000 shows little increase on that of last year. Of this total, i 1 is expctced that £40,000,000 will he provided by taxation, £12,000,000 by the United Kingdom Government, and £40,000.000 by lend-lease assistance. The deficit of £50,000,000 is to be. secured by means of internal borrowing. £35,000,000 from t he forthcoming public loan. £10,000,000 from departmental loans, and the balance of £5,000.000 from advance subscriptions to future loans. In the consolidated fund estimates, too, there is little estimated change. Taxation is expected to provide £35,500,000, about £700,000 less than last year, and other revenue £6,100,000. Expenditure is estimated at £41,600,000, an increase of £3,000,000 on last year, of which £2,500.000 is in respect of increased debt charges. Expenditure from the social security fund, estimated at £17,400.000. shows an increase of £1,450,000 on last year, but this amount can be met out of the surplus in Ihe fund.