BUDGETARY POSITION.

Ashburton Guardian, Volume 60, Issue 223, 28 June 1940, Page 3

BUDGETARY POSITION.

REVENUE AND EXPENDITURE. SMALL ESTIMATED! SURPLUS. WELLINGTON, June 27. The expenditure and revenue for the current year was shown by the Minister in his speech as follows: — The additional revenue available for the Consolidated Fund from incometax and silver-coin profits amounts to £3,100,000, and as only £1,150,000 is required to balance the Budget it is proposed that all the revenue from death and gift duties including the £1,950,000 that would otherwise be credited to the Consolidated Fund under the heading of “Stamp and Death Duties” should go into the War Expenses Account. If this is done the budgetary position of the Consolidated Fund will be as follows: Revenue.

Reverting to the War Expenses Account, to augment the revenue it is proposed to introduce a new scale of death and gift duties designed to provide a further £750,000 per annum, oi approximately £400,000 for the balance of this financial year. The new scales reduce the exemption from estate duty from £IOOO to £2OO and from certain succession duties from £SOO to £2OO. In Great Britain the exemption from estate duty is £IOO and in some of the Australian States £2OO. The new maximum rates will be 50 per cent, for combined estate and succession duiies in the case of estates of £70,000 and over devolving upon the widow and children, 55 per cent, when left lo father, mother, brothers, sisters, nephews, aunts, and uncles and other blood relations within the fourth degrees, and 60 per cent, when the successors are relatives outside the fourth degree or are strangers in blood, including charities. The ability to collect death duties is an important factor in fixing the maximum rates of duty. Further details in regard to these proposals will be laid before honourable members when the necessary amending legislation is brought down. Including the revenue diverted from the Consolidated Fund and the equivalent of the extra one-third payable to War Expenses Account under last year’s legislation, the total amount pay l sle into this account from death and’gift duties for the current financial year is esti» mated at £3,000,000. In addition there will be £500,000 from postages, And £720,000 from various Customs duties under last year’s special war taxation provisions.

Taxation— £ Customs 7,500,000 Beer dutv 1,380,000 Sales tax 3,000,000 Highways 2,600,000 Stamp duties 1,650,000 Land-tax 1,000,000 Income-tax 13,550,000 Miscellaneous 225,000 Total 30,905,000 Interest ... 2,800,000 Other , receipts 3,375,000 Grand total ... 37,080,000 ' Expenditure. ■0 Permanent Appropriations— Debt services .... 10,671,000 Exchange ...' 1,500,000 Transfer highways revenue 2,583,000 Other permanent appropriations 380,000 Total ... 15,134,000 Annual votes— Social services ... 11,834,000 Other sei-vices 9,816,000 Supplementary estimates and contingencies 250,000 Grand total ... 37,034,000 Leaving an estimated surplus of ... £46,000