N.S.W. FINANCES.

Auckland Star, Volume LX, Issue 293, 11 December 1929, Page 7

N.S.W. FINANCES.

BUDGET SURPLUS.

State Faces Unpromising Economic Outlook.

DEDUCTION IN TAXATION.

(United Telegraph—Copyright

(Received II a.m.)

SYDNEY, this. day.

In the Legislative Assembly to-day the Treasurer, Mr. B. S. Stevens, delivered the Budget speech. He said the financial operations for the year ended "June 30 last had resulted in a surplus of £593,169. The revenue was £20,703,940, and the expenditure, £20,110,771.

Mr. Stevens said he estimated that the revenue this year would diminish by £420,137. There was the utmost difficulty in arriving at the revenue estimates, owing to the uncertain financial trade outlook.

1 He estimated the current year's expenditure at £20,262,417, which was slightly greater than that of last year. Commenting on the economic position, which he described as grave, and the diminishing purchasing power of the community and the growth of unemployment, which was accentuated by the coal trade deadlock, Mr. Stevens said thatf whereas the "average amount received by Australia for the past five years from the sale of her primary products abroad was about £141,000,000, the amount which these would realise in 1928-29 would be only £112,000,000.

In., other words, there would be £29,000,000 less coming into Australia for the sale of her products.

Mr. Stevens announced that the Government was compelled to reduce the amount of loans from £14,500,000 to. £10,000,000 for this year, owing to the adverse market conditions for overseas loans.

The Government proposed to try*, to stimulate production and to reduce the burdens on industry. It would reduce the taxation on incomes this year by £1,000,000, and the supertax of 3d in the pound on companies would not be levied this year, while the maximum ratfe of 3/ would be reduced by 3d to 2/9.

There would also be a general reduction of 5 per cent in the rates on incomes from individual personal exertion and property. The existing method of child endowment taxation would he substantiated by a tax of 1 per cent on the wages of employees under State awards as from January 1. This method would lift a burden off industry of about" £1,000,000 a year. The Government also intended to obtain additional revenue from increased charges for liquor and tobacco licenses, and betting taxes. Railway Indebtedness. , Mr. Stevens announced that they expected to finish the financial year with a surplus of £21,386. He intimated that it was also proposed to impose a tax on amusements. Referring to thegrowth of the competition of motor traffic' against railways, Mr. Stevens said that the time had arrived when the Railway Department would have to go after business rather than wait for it to come to the railways. The railway earnings last year were £19,000,000 and the working expenses approximately , £15,000,000, the interest bill, however, was over £6,000,000. The capital invested in the New South Wales railways was £124,000,000, which aggregated almost half the public debt.