RECORD BUDGET IN AUSTRALIA

Southland Times, Issue 24840, 4 September 1942, Page 5

RECORD BUDGET IN AUSTRALIA

TOTAL EXPENDITURE OF £549,492,000 (Rec. 6.30 p.m.) CANBERRA, Sept. 3. A record Budget, providing for a total expenditure of £549,492,000 was introduced by the Federal Treasurer, Mr J. B. Chifley, in the House of Representatives tonight. Of this amount £440,000,000 is to be spent on the war. It is proposed to finance this huge sum principally by loans. Taxation and other receipts during 1942-43 will, it is estimated, provide £249,000,000, leaving a deficiency of approximately £300,000,000. No alteration in the income tax was announced, but the entertainment tax will bring in £3,250,000, and additional Customs and ex-

cise revenue will amount to £14,200,000 in the full year. Details of this tax, which presumably will be imposed on tobacco and liquor, will be announced later. The entertainment tax will begin at 3d on an admission charge of 1/-, and will increase by 2d for every 6d, by which the admission charge exceeds 1/- up to 5/-. Above 5/- the increase is 3d for every 6d above 5/-. Approximately a 25 per cent, reduction will apply to “flesh and blood” shows. CLOSING OF GAP “This year,” said Mr Chifley, "the Government faces the problem of finding £300,000,000, which is the gap between the estimated expenditure and the estimated revenue. The excess spending power of the people must be transferred to the Government to pay the fighting forces and for labour and materials used in producing munitions and war supplies. While relying to a large extent or. the voluntary efforts of the people, the Government is resolved that its payment will not be evaded. “Last year we received £120,000,000 from public loans. If we double that amount this year we will receive £240,000,000, which is four times that received in 1940-41. This would leave £60,000,000 to be provided from savings bonds and savings certificates. This is about the British rate of contributions to small savings and with our higher wages it should be capable of accomplishment. Expenditure for the Army, Navy and Air Force will amount to £415,000,000.