FEDERAL BUDGET

Hokitika Guardian, 11 July 1931, Page 5

FEDERAL BUDGET

17 MILLIONS DEFICIT. (Australian, Press Association.) CANBERRA, July 10. The Federal Budget was to-day delivered jn the House of Representatives by the Treasurer, Hon. E. G. Theodore. The Treasurer explained that the Foclem 1 deficit is £17,2.15,062. He anticipated tint this could be reduced to £5,176,300 during the 1931 32 financial year, but with concessions under the Hoover War Debt Plan, there was a good chance he said, of its being reduced to £1,148.300. Ill"' nnfiuicWl debt in London totalled £38,0 1 5,000, of which the Australian Rank held £33,075,000. The Westminster Bank ljeld the other £5,000,000.

The net, amount owing by New South Wales to / tho Commonwealth, he stated, is £3,834,000. The- Treasurer stated that despite the severity of the depression, the sum of £4,644,395 was applied during the year to tho redemption of Commomveatlh debts, end there was also £3,514,000 applied to the' redemption of State debts.

The gross public debt of the Commonwealth had increased during the year by £13,637,000, and now stands at £386,594,000. The gross States’ debts now aggregate £676,000,000, revealing an increase of £39,036,000 during the venr.

The estimated receipts from all of the taxation during this fimn-c'al year will be £120,000 less than the receipts for the last year, when the total was £50,420,000,

The new sales tax, he ncided, was expected to bring in £8.500,000, and the new duties £4,500,000.

THE INCREASED TAXATION

Canberra, July in

The increased, taxation is the outstanding fp?ture of the Federal Budget delivered by Mr Theodore to-day. Tho normal rates of income tax payable by individuals and by companies will be increased all round by five per cent. The existing supertax of 7} per cent, on property income is being increased to ton per cent. The additional revenue derived from these two sources is- expected to yield one million and a-half sterling.

There is to be a general lowering of the income tax exemptions, whereby it is boned that a large number of wage earners who have hitherto escaped such taxation will pay income tax. The sales tax, which is now at 2} per cent., and which,the Government had intended to increase to five per cent., will be increased to six per cent. The primage rates are being increased immediately, raising to as high as ten per cent., in instances, according to the cases of the goods imported.

The new sales Tax is expected to bring in £8.500.000, and the primage duties £4,500,000.

THE SALARY CUTS

CANBERRA, July 10.

The Federal Budget also contains a proposal for a twenty per cent, reduction in salaries. The Minister of Defence announces that further economies to the extent of £407,526 are being made in the Defence Department during the present year. The Government has decided to reduce the naval personnel by one hundred and fifty men. Retrenchment is also being applied to tho civil and aviation establishments.

MEETING- THE DEFICIT

£34,000,000 REVENUE ESTIMATE

CANBERRA, July 10

In his Budget speech, Mr Theodore emphasised that the failure of the New* South Wales Government to pay interest due on its overseas debt had brought the total accumulated deficit to £21,049.662. He said that loan authority for seven millions is already available to meet shortages in the revenue account, and that fourteen millions more would be required to meet the accumulated deficit as to June 30, 1931.

He estimated that the revenue from taxation and other sources will amount to over fifty-four millions for the current year. He estimated that the saving to be expected on war reparation and defence expenditure will be five and a-quarter millions.

FINANCE BILL

PASSED BY THE HOUSE

CANBERRA, July 10

The Financial Emergency Bill was to-dav passed by the House of Representatives, after an all-night sitting, and one of the most bitter debates on record. The Beasleyites opposed the Bill all through, one of whom, Mr Eldridge, was suspended.

INCREASED TAX

SYDNEY, July 11

Hr Lang informed the caucus that Government will introduce a Bill next week to increase the Child Endowment Tax from one to two per cent. The tax will apply to employers within the State, whose employees are engaged under Federal awards. These were previously exempted. The yield from the tax will be incrca-ed from sex •hundred thousand pounds to two millions. The endowment fund has been, overdrawn by a million and a-half. -•