CANADA'S BUDGET.

Auckland Star, Volume LVIII, Issue 41, 18 February 1927, Page 7

CANADA'S BUDGET.

Prosperity Follows Post-War

Depression.

BIG REDUCTION IN TAXES,

(Received 11.30 a.m.)

OTTAWA, Februarv 17

"Four years ago, when I presented my first Budget, Canada was still suffering the effect of post-war depression. To-day all traces of that depression have disappeared."

So said the Finance Minister, the Hon. J. A. Robb, in the House of Commons on Thursday when introducing the Budget for 1927-8.

Declaring that the aim had been to lighten the burden of every taxpayer rather than to afford relief to special groups, provinces, and sections of the country, he announced taxation reductions estimated at £5,400,000.

The reductions in taxation effected a cut in the income tax of ten per cent all round, in the sales tax from five to four per cent, and either reducing or abolishing various stamp and excise taxes. There will be no tariff changes. He said the Government's policy had been to promote trade relations with other countries, particularly within the Empire. He estimated a favourable trade balance for the present fiscal year of approximately £50,000,000. Domestic and international trade was flourishing. The outstanding points of the Budget are: Estimated total revenue £78,800.000, representing an increase of £2,400.000; estimated expenditure £72,000,000. representing an increase of £1,000,000. The estimated national debt reduction is £6,200,000 and the income and other tax reductions £5,400.000. Mr. Robb announced that 5A per cent loans, totalling £18.200,000. maturing in November and December next, will be redeemed by new flotations at a lower rate, thus saving £200.000 in interest annuallv.