FEDERAL FINANCE.

Sun (Christchurch), Volume I, Issue 258, 4 December 1914, Page 7

FEDERAL FINANCE.

A DEFICIT DISCLOSED. THE COST OF THE WAR. ,;. By Cable.—Tress .Association.-r-Copyrioht. ."•'i- MELBOURNE, December 3. -In the Federal House, Mr Fisher, in delivering the Budget, said that the revenue , for the past year was £21,740,-423, and the expenditure He estimated the revenue for the current financial year at £24,495,401, and the expenditure at £37,583,715, making a total deficit of £13,088,314. The expenditure included £11,742,050 in connection with the war. If this were deducted,, the ordinary expenditure would be £25,841,655, and the deficiency £1,346,264. This deficit would be made up by a loan from the British .Government" of £10,500,000 and Treasury Bills for £2,588,314. The British -Gov-ernmejrt altogether was advancing £18,000,000 for war purposes, -birt as it would be paid at the rate of £1j500,000 monthly, H only £10,500,000 would.be received during the financial year. It was proposed to raise a million extra revenue by probate succes.siom.duties, and he anticipated, an increase of £1,100,000 in the land tax. Against this there would be' a falling ofiof. £700,000 4n Customs and Excise. , Referring to the- war, Mr> Fisher said that approximately 42,000 troops would be dispatched by June next. Experience had shown that the creation of efficient sea defence in the South Pacific was essential to the safety and general welfare of .the British Dominions. The Government hoped that the <lay was not distant when New Zealand, whilst maintaining its identity unimpaired, would be more closely assimilated with the Commonwealth in the creation and maintenance of effec•tive defence in a common sphere of action. Mr Fisher anticipated the cost of the Expeditionary Forces up to next June, when it is expected 42,000 troops will have been dispatched, to total £9,800,000. Already 22,373 men have been sent to the'front, and 16,500 are in training. "'"■"' (Received December 4, 9.50 a.m.) MELBOURNE, December 4. , . Mr. Fisher stated that the new tariff "had been hurriedly prepared, in the absence of the Int'ei'-State. Commission's report. He anticipated that the excise duty w r ould yield an additional £1,250,000, and Customs £250,000. The Military and Naval Estimates provide for an increase of £750,000 for fleet construction, £250,000 of which would be devoted to a new light cruiser. The estimated outlay on the military forces was £12,254,490. The Government intended to commence the construction of flying machines, and the Hon. G. F. Pearce had* sanctioned the construction of a coffer dam at Cockatoo Island, at an estimated cost of £30,000, for the purpose of launching the cruiser Brisbane.