MILLION A DAY AUSTRALIAN BUDGET

Auckland Star, Volume LXXII, Issue 211, 6 September 1941, Page 7

MILLION A DAY AUSTRALIAN BUDGET

USE BAM CREDIT

Compulsory Savings To Avoid Tax Increases

Urvi'.ed Press Association.—Copyrig-ht. Rec. 11.30 a.m. SYDNEY, this day. Bank credit will be used to a degree never before envisaged by a non-Labour Government in the Budget, of which consideration has been completed, says the Sydney Morning Herald's Canberra correspondent. The Government will meet HJ e Representatives with tne Budget during the sittings, which begin on September 17.

Expenditure may well be above the estimate of £350,000,000, authoritatively made before the political crisis forced a revision of the Budget plans. The expansion of bank credit and a post-war credits scheme, in which compulsory savings will be exacted from a wide range of incomes, will be the chief new financial devices proposed by the Government. A compulsory savings scheme will largely take the place of taxation increases, which would otherwise have had to be made.

On the expenditure side the pay for the fighting forces will be increased. There will also be a generous increase in allocations for old age and invalid pensions.

Minister for London It is reported from Canberra that the Federal Cabinet has chosen an Australian Minister to London, but the name has not been announced. Supporters of the Minister of Commerce, Sir Earle Page, believe lie was the choice. In lobby speculation the only other Minister seriously mentioned was the Minister of the Army, Mr. P. C. Spender. It is understood Mr. Menzies made it clear he would not accept the post. It is believed that no information has been received from Britain yet whether the Minister will be given a seat in the British War Cabinet.

The Prime Minister, Mr. A. W. Fadden, stated that the chosen Minister's visit to London probably would be short.