ALL ROUND BUDGET EXPANSION

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 10

ALL ROUND BUDGET EXPANSION

REVENUE AND EXPENDITURE UP ADDITIONAL £4,894,600 REQUIRED HEAVIER TAXATION ON INCOMES AND LAND. Last-minute decisions involving lengthy additions to the 1936-37 Budget were made by the Minister of Finance, the Hon. Walter Nash, before presenting Labour's first financial statement in the House of Representatives last night. His address was broadcast over all the national radio stations and was listened to by crowded galleries in the House. A large increase in revenue and expenditure, increases in taxes on land and incomes, all-round additions to pensions and a general expansion in Public Works expenditure were features of the Budget. Mr. Nash also announced the schedule of guaranteed prices to be paid for butter and cheese under the Government's marketing scheme, the price for finest butter to be 12 9-16 d per pound. Estimated revenue established a Budget record of £31,067,000, which showed a surplus of £13,000 over estimated expenditure. Hems of outstanding interest in the Budget were: — Votes totalling £10,302,000 for social services, an increase of £2,545,800 over last year's expenditure, making this group for the first time the largest item in the Budget. Increases in pensions to miners, widows, ex-soldiers and aged people, aggregating £1,710,000 more than last year. A Public Works programme of £10,450,000, of which £5,940,000 will be borrowed. Restoration of the graduated tax on land, trebling the estimated yield from this source. A simplified income tax scale, with increases particularly on larger incomes. In announcing the additional grant for pensions, the Minister said, "The increases in the rates, together with the wider field covered, will remove incalculable hardship and trials." Commenting on the income tax increase, he said the Government intended to remodel the tax system and make it more equitable as between taxpayers. The major contribution to the additional yield from this source was estimated to come from the expansion in profits and incomes, which had increased the assessable total for the past year. Concerning the land tax, Mr. Nash said, "The purpose of this tax is to obtain for the community the values created by it. The principle behind the policy of the Government is to ensure to those who utilise land the maximum payment for their labour. The procedure will mean the minimum of taxation on the working farmer and home owner. No changes were made in Customs and sale taxation.