The Grey River Argus FRIDAY, June 4, 1943. DOMINION 1942-43 WAR FINANCE.

Grey River Argus, 4 June 1943, Page 4

The Grey River Argus FRIDAY, June 4, 1943. DOMINION 1942-43 WAR FINANCE.

Naturally every other Budget feature in the past year has been dwarfed by Avar fiiuance. It is thus reassuring in what degree the .Dominion has been able to stand by the policy as pay-as-you-go. Our total war costs up to March 31, were no less than £239 ; - 000.000, whilst 1123,500,000, or 52 per cent, was raised by borrowing. In the past year £199,900,000 was laid out, of which £142,800,000 was for the Avar; £25,000,000 for social services; £12,400.000 roa interest on debt; and £1.0,900,000 for civil administration. War expenditure has now exceeded £.1.40 per head of the population, and is now nearly three millions per week. Air. Nash last, evening contrasted the country’ total expenditure of Jess than £100,000.000 on the last war Avith the much more than double that outlay already .in this Avar. In the coming year, a deficit of

£50,000,000 .in the provision of funds is estimated. toAvards meeting Avhich a loan, of £35,000,000 is now being raised in the Dominion. To the suprise, probably, of the great majority, the Budget provides for absolutely no new taxation —a fact in itself a tribute to the Government’s confidence, and to the Avay in Avhicli the people, by their past sacrifices, have inspired that, confidence. On voluntary, rather than on compulsory, giving does the Government rely; and it is for the nation to respond in a planner worthy of such trusts. The estimated revenue of the "War Expenses Account includes taxation at, the existing rates amounting to £40,000,000, together Avith the usual transfer of £1,500,000 from the Consolidated Fund and last year’s Budget surplus of £4,200,000. Transactions under the Memorandum of Security Agreement, Avith the United Kingdom Government are estimated at £1.2,000,000, compared Avith last year’s gross total of £15,400,000. The reduction is due to the fact that avc have now paid for the cost of the initial equipment supplied to our Forces. The principal item under the 1 end-lease heading of £40,000,000 is the provision of aeroplanes, while oil. fuel, equipment. and supplies for the Armed Services and other essential purposes account for .the balance. Last year two public loans bearing interest at 24- per cent, and 3 per (•ent., Avcrc oversubscribed to bring in a total of £28,000,000. In addition, a further £4,000,000 Avas raised in small sums by means of national savings. Mr. Nash, records as receipts for the past year, the phenomenal sum of almost tivo hundred millions. Of this £146,800,000 was for the War Expenses Account, including £4.1,600,000 from taxes, £78,000,000 from loans, and £26.800,000 from Lend-Lease.- Into the Consolidated Fund £37,100,000 Avas received, and into the Social Security Fund £16,000,000. Tax■ition altogether last year realised £86,800,000, of which income tax provided £25,600,000 ; National Security tax £10,400,000 and Social Security Tax £10.400,000. Land estate, succession, and gift taxation only provided £5.700,000. The Sales Tax Avas the largest indirect tax contributor Avith - £ll,000,000; next coming Customs, £9,400,000; beer duty, £2,900,000; and stamps and highways each £1,700,000. Income tax shoAved the substantial rise of £6,600,000 —the surtax rise and increase in incomes being responsible. The National Security Tax showed a similar rise of £6,300,000, largely because it Avas increased by 50 per cent, to 1/6 in the £. The. Sales Tax increase Avas also sub- j stantial, nearly four millions, fol-1 lowing a doubling of the rate on

certain items; while beer duty rose by a .round million—in spite of the drop in strength ! While indirect taxation was greater than the previous year by over nineteen millions, Mr. Nash emphasises the fact that of the total taxation, £86,800,000, there was 68 per cent, or £59,100,000, raised by direct imposts. While the outlay on the Army in the current year will be £20,000.000 less than last year, the’Air Force vote has very largely increased. We have, however, been exceedingly fortunate that war has not reached our shores, and as we rely now ourselyes mainly on th? Air Force, its greatly increased strength will be welcomed as a source of security., Taken generally the past year’s military financing must be viewed with : commendation and as the tide of war has turned, there is the double consolation that the outlay has contributed to that happy clevelopment in no small degree.