WAR FINANCE

Wairarapa Times-Age, 1 July 1942, Page 2

WAR FINANCE

AUSTRALIA’S MOUNTING EXPENDITURE HEAVY DEFICIT IN PROSPECT. TO BE MET BY CREDITS. (By Telegraph—Press Association—Copyright) SYDNEY, June 30. “The Commonwealth will budget for a deficit of probably £100,000,000 for the next financial year,” says the “Daily Telegraph’s” Canberra correspondent. “The indications are that this deficit cannot be avoided, because the Government has made it clear that there will be no major tax increases. It is expected that the Government will ask the Commonwealth Bank to meet the estimated deficit by the release of bank credit. “The Budget for the next financial year will provide for the expenditure of about £515,000,000—£400,000,000 for the war and the balance for normal commitments. It is estimated unofficially that the ordinary Commonwealth revenue will amount to about £220,000,000, and all types of loans will bring in another £200,000,000. On the figures at present available,. the deficit for the current financial year will be about £70,000,000. “The total expenditure for the year has been about £403,00,0,000, of which £300,000,000 has been for the war and £103,000,000 for ordinary Commonwealth commitments. The total ordin-lk ary revenue has amounted to about £200,000,000 and loans have brought in another of £130,000,000. When this deficit has been carried forward the total deficit by June 30, 1943, will approximate £ 170,000,000—the biggest in Federal history. “The Prime Minister, Mr Curtin, and the Treasurer, Mr Chifley,. will discuss the Budget with the chairman of the Commonwealth Bank Board, Sir Claude Reading, and the governor of the bank, Mr H. T. Armitage.” NEW SOUTH WALES SURPLUS. The Premier of New South Wales, Mr McKell, announced today that the State surplus for the financial year ended today would be substantial. For the first time in many years, New South Wales’ finances were in a healthy condition, and that was grati- ( fying to the Government, which had' just completed its first year in office. It had been accomplished though more than £1,000,000 had been spent on the National Emergency Services during the year. In Canberra today Mr Curtin announced that the second Liberty Loan was over-subscribed by £2,150,000. ■ The money was subscribed by 192,000 people. To the first £35,000,000 Liberty Loan 243,000 people subscribed £48,000,000.