SOUTH AFRICA.

Taranaki Daily News, 18 April 1921, Page 5

SOUTH AFRICA.

FINANCE STATEMENT. DIFFICULT PERIOD AHEAD. SMALL MARGIN SHOWN. By Telegraph.—Press Assn.—Copyright. Received April 16, 5.5 p.m, Capetown, April 15. Introducing the Budget into the Assembly this afternoon, the Minister of Finance said the deficit for the current year was less than expected, but there was only £250,000 to be carried forward to next year. Referring to trade, he foreshadowed more drastic dealing with profiteers, and said the middleman figured too largely in the distribution of commodities. Experts’ reports indicated that the prospects of the iron and steel industry of South Africa was very bright, but the country was feeling the effects of the trade depression.

In reference to the new financial year he estimated the expenditure at £25,815,000, or £4,000,000 less than last year, and the revenue at £29,543,000, an increase of £832,000, due chiefly to the adjustment of salaries, and wages. The unemployment expenditure deficit would be nearly six millions. Drastic economy was necessary to produce an equilibrium. He proposed to gradually eliminate the cost-of-living allowance to civil servants, curtail by half the additional £2OO members’ allowance voted last year, and transfer the proceeds of the sales of Crown lands from loan to revenue. Letter postage wouhft be increased from to 2d, income tax exemption reduced from £5OO to £3OO, and the tax on companies increased. Increased duties would be placed on spirits, beer, and bioscope films. The Government had decided to put no taxes on necessaries, and had also rejected the proposal of a special committee to impose an additional tax of twenty per cent, on boots and shoes.—Aus. and N.Z. Cable Assn.