THE FEDERAL BUDGET

Otago Witness, Issue 2892, 18 August 1909, Page 19

THE FEDERAL BUDGET

DECREASE IN THE REVENUE

- MELBOURNE, August 12. Sir John Forrest delivered the Federal Budget to-day.

The total revenue for the year was £14,349,835, a decrease of £671,890 on last year's figures. Customs and Excise yielded £10,843,985, a .decrease of £801,367, and the Post Office £3,409,000, an increase of £108,911.

The expenditure was £6,419,364, and the balance lianded back to the States was £7,930,471. For the current year the revenue is estimated at £14,555,000. Customs and Excise are set down at £10,800,000, and the Posk Office at £3,550,000. The estimated expenditure is £7,867,621, and the amount to be handed back to the States is set down at £7,891,480.

These figures show an estimated shortage of £1,200,000 for the current year. The Government proposes to ask parliamentary authority to raise this amount by the i«sue of short-dated Treasury bonds spread over four years, commencing in 1912. The Treasurer said he considered that the estimated deficit was due merely to a temporary shortage of fun<Ss>

The Defence Estimates for the current year total £1,585,000, an increase of £624,000. .The principal increase is £12,000 for a oordite factory, £42,000 for a, sma-11-arms" factory, and £52,536 for guns, mountings, and ammunition. Sir John Forrest states that tine Defence Bill will provide for the physical training of all sclioolboys from the age of 12 to 14 years and for elementary military training from 14 years to manhood.

In connection with wireless telegraphy, it is proposed to make £10,000 available for connecting up the Pacific Islands. Over half a million is provided for new telegraphs and telephones. A similar sum will be provided for the two following years, at the end of which it is expected that the service will be in thorough order.

The sum nf £1.560,000 is available for old-age pensions for the current year It is expected that this will be sufficient, but in future a quarter of a million more will be required . Anomalies in the tariff are to be considered. Sir John Forrest declared that but for the near approach of the end of tho Braddon clause decade new taxation would be imperative.

Sir John Forrest ttrett out a suggestion that the States should refund the sum of £6,059,000, which they had i>eceived during seven years over the statutory three-fourths to which they were entitled. He strongly commended the offer of a Dreadnought or its equivalent. Dealing with the question of where the money was coming from, he declared that the revenue of Australia was all available for such, demands, and there was sufficient for this and all other claims arising- in the future. Members would be fully informed as to the means to be adopted to provide additional funds for an\' purpose.

August 13.

The cost to the Federal Government of entertaining the American fleet was £31.461.

The Commonwealth's share of the estimated lows for the current year on the Pp rifle cable is £2000.

The mm of £10,000 will be provided to establish wireless telegraph stations.

The Federal Hou-=e of Ecpreseniatives, after a short discussion, adjourned the Budget debate.

The House has adjourned till the 25th inst to enable Mr Deakin to attend the Premiers' Conference. The Senate has similarly adjourned.

SYDNEY, August 13.

The Herald says that the Budge>t deals warily with a difficult financial situation. There is no proposal for extra taxation, but that may come later. The Treasurer could have his Estimates by a tax on tea. By the issue of Treasury bills a loan policy may be said to have been inaugurated. The Budget is but preliminary to a larger Budget which, Sir J. Forrest said, would depend on the Premiers' Conference.

The Telegraph says that the Budget contains matter for some very hard thinking by both the Federal and the States Legislatures, and much will depend on how the readjustments of the financial relations between the States and the Commonwealth are viewed by the Premiers' Conference.