WAR COSTS & REVENUE

Wairarapa Times-Age, 1 May 1942, Page 3

WAR COSTS & REVENUE

Mr Fraser summarised the requirements of the War Expenses Account as .follows:--Expenditure, ' £ Army .... 97,000,000 Navy .... 10,000,000 Air 19,000,000 Civil 7,000,000 133,000,000 Revenue, War taxation (at existing rates) 20,000,000 Transfer from Consolidated Fund of 1941-42 surplus (£1,500,000) and further £1,500,000 from 1942-43 revenues 3,000,000 Miscellaneous•.... 4,000,000 27,000,000 Gross deficit 106,000,000 Less— Amount to be borrowed from the United Kingdom Government under the Memorandum of Security Agreement 46,000,000 Expenditure to be financed under lease-lend procedure 10,000,000 ; ■ 56,000,000 w:'~! i*yr' . -— Net deficit £50,000,000 .TAXATION & LOANS “These increased taxes will, it is • anticipated, yield an additional total of £14,400,000, leaving a balance of £35,600,000 to be obtained from borrowing. The existing National Savings Scheme, together with State departments funds, will, it is estimated, provide £8,000,000 toward this objective, leaving a total of £27,600,000 to be obtained by means of war loans. Summarised it is proposed to meet the deficiency of £50,000,000 as follows:— . Taxation-— £ Income super-tax increase from 15 per cent to 33 1-3 per- cent 3,000,000 National security tax, 6d in £1 4,900,000 Sales tax, 10 per cent .... 3,700,000 Increased taxes on beer, wines, and spirits 1,000,000 Increased taxes on tobacco and cigarettes 1,800,000 14,400,000 Loans — National savings scheme and departmental investments 8,000,000 War loans 27,600,000 35,600,000 £50,000,000