THE BUDGET.

Manawatu Herald, Volume XXXIX, Issue 1743, 2 August 1917, Page 3

THE BUDGET.

PROPOSALS SUMMARISED, The Budget submitted by the Alinister for Finance contains the following proposals: — Authority to raise within the Dominion an amount of £24,000,000. Of this amount a £12,000,000 loan is to be put on the market with little delay as possible. It is hoped that it will only lie necessary to raise a second loan of £10,000,000, but authority for a margin of an additional £2,000,000 is advisable. Rate of interest, 4 V per cent, interest free of income tax. In the event of voluntary contributions' falling short of the amount required authority to introduce a system of compulsory contribution will be asked for, to bo enforced on incomes of £7OO per annum and over. Additional allowances are to be provided for dependants of soldiers. Details of amount required will appear in supplementary estimates. £120,000 is to be provided for extra payments to old age, military, widows and miners pensions, on ac--eonnt of the increase in the cost of living. £400,000 will he provided for war bonuses for State employees. No further duty is to ho imposed on motor ears. Last year the sum of £148,345 was raised under this head. An amusement (ax, to commence at one penny where the price of admission does not exceed sixpence, proceeding in graduations, until it reaches one shilling where the price of admission is 12s (id, to to he imposed. Estimated to produce £BO,000, lo he devoted to paying war bonus to old age and other pensioners. ' The excess profils (ax has not raised the sum estimated, and is to be abolished. The progressive land tax proposed to be imposed commences at one penny half-penny in the £ of taxable balance a Her deducting exemptions. and increasing until it reaches teiipenee half-penny at £1.9,200 of value. This is a fifty per cent, increase on last year. The land tax is estimated lu produce £1,250,000. The income tax is lo be increased, but the exemplion will remain ns at present, £3OO. From £3OO lo £4OO Hie rale will he sixpence in the £, increasing until it roaches 3s in the £ a( £O,-100. Estimated revenue, £1,000, 000. SPECIAL WAR TAX. In addition to Hie above, special Avar taxation as under will be ini-" posed;— The present system of special war taxation on incomes is to bo relained, Iml Avill he increased by 50 per cent. The minimum rate will he Is 3d in Hie £, and the maximum 7s (id. Estimated to yield £3,000,000. A special sum nol exceeding £2,090.000, spread over a period of two years, will he devoted to public or oilier works for Hie purpose of providing employment for relumed soldiers. Part of Ibis amount will In 1 made available through Hie Stale Advances Department for local bodies, avlio Avill he asked to assist in Hi is work. The House will he nsked (o agree 10 an increase in (he customs and excise duties on tea, beer, spirits, champagne, cigars, cigarettes, silks, satins, velvets, [dashes, and imitation silks. In norntal limes (ho additional revenue realised in this connection Avonld lie £317,000, hut owing lo Hie dislocation of shipping, 11 would he unsafe lo rely upon obtaining more Hum £275,000 from Ihis source. The Customs Duties collected last year I (dulled £3,849,075, Hie largest ever Collected. When the excise beer revenue of £187,953 is addedjit brings Hie total lo over £4,000,000, for Hie first time in the history of the Dominion. The beer duly collected during last year was £7,000 less than was estimated. The A 1 busier estimates the revenue for Hie current year as follows: —Customs £2,030,000, railways £4,200.000, stamp and death duties £l,400.000, postal and telegraph £l,725.000, land and income lax £5,850.000, beer duty £225,000, registration and other foes £IOO,OOO, amusement lax £BO,OOO, marine £44,000, miscellaneous £450,000, terrilorial revenue £175,000, endowment revenue £93,800, other receipts £IO,OOO, a total of £17,282,800. This .is £1,084,74-7 below the receipts of lasl year, and is dependent upon Hie House giving authority lo make Hie imporianl alterations he proposes in regard lo taxation. The estimated surplus for the year is £1,200,098, made up as follows :■ Estimated revenue £17,282,800, estimated expenditure £15,382,702, plus estimate for supplementary estimate £700,000, total £16,082,702, and leaving a balance as above, LAST YEAR’S OPERATIONS. The Alinister summarised the most important items relating to the financial operations for the past year as follows; — Successful ilotation of £16,000,000 for Avar purposes. Of this sura, £.11,000,000 subscribed within the Dominion; approximate cost, A per cent. Investments in London increased to £7,000,000, Redemptions and renewals effected amounting to £1,859,040. Completion-of conversion scheme by Avhieh £2,133,000 converted into long-dated securities. Net surplus, £4,308,777. Public works expenditure reduced to £1,278,922. Income-tax receipts increased by £2,870,007. Post Office Savings Bank depo-

sits increased by £3,430,844. TAventy-five settlements purchased for discharged soldiers, making a total area of 337,961 acres thrown open and available for settlement. 62,421 authorised for soldier-set-tlors by way of financial assistance. 6,530 Avar pensions granted fo 31st March, 1917. of an annual value of £342,195, Total payments to producers for supplies purchased on behalf of the Imperial Government, £27,819,110. Record collection of Customs and excise revenue —over £4,000,600. Short-dated securities to Imperial Government for Avar advances eonverted into long-dated securities. Gross Avar expenditure, £28,439,912,'