POINTS FROM THE BUDGET

Press, Volume LXXI, Issue 21581, 18 September 1935, Page 12

POINTS FROM THE BUDGET

CIVIL SERVICE WAGES INCREASED LOWEit UNEMPLOYMENT TAXI [From Our Parliamentary Reporter.] WELLINGTON, September 17. A substantial improvement in thß economic position of the Dominion in the last 12 months was commented on by the Minister for Finance (the lit. Hon. J. G. Coates), in presenting the financial statemcrt to-night. The. budget estimated for a surplus of £13,500. Mr Coates said that the Government was not unmindful that the burden of taxation was heavy, and he regretted that there was not sufficient scop® in the budget to make further reductions this year, having regard to the prior claims of the public service for restoration of cuts in salaries and wages. However, with the increasing progress now being made towards economic recovery, a substantial reduction in taxation should not be long delayed. The Minister announced an increase of 7£ per cent, in the wage of public servants, to take effect from October 1 next. Old age pensions will be increased by 5 per cent, from the same date, this completing the restoration of the 10 per cent, by which the pensions were reduced. Widows', miners', and soldiers' economic pensions are also to be increased by 74 per cent, from October 1. Legislation to entitle widows of returned soldiers to pensions if they were married within seven years of the husbands' d&Pcharge is to be brought down. The tax on wages for unemployment relief will be reduced from lOd in the £ to 8d in the £ on October 1. Even with this reduction the Government considers that the revenue of the Unemployment Board will be nearly £ 1,250,000 more than the actual expenditure in the financial year ended in March last. The Minister said that the additions to salaries, wages, and pensions, together with the reduction in unemployment taxation, should giv* a further impetus to the recovery in trade and industry now. taking place. . The total revenue estimated for the current financial year is £25,742,000, and the expenditure is set at £25,728,500. Last year the total revenue was £26,126,094, and exceeded the budget estimate by £ 1,874,094. New Telegraph Charges The zoning system of charging for telegrams, by which the cost of telegrams increased according to the distance they were sent, is to be abolished. In future telegrams will cost Id a word, with a minimum charge of 6d. Telephone toll calls will also be charged on a new basis, the distance in future being calculated ori' the " nearest practicable vehicular route or pole-line. Extra revenue is expected this year—because of the general recovery—from petrol tax and motor registrations. The payments for highways purposes will exceed last year's by £'454,000. Last year £322,000 of highways revenues was retained in the Consolidated Fund for general use, but no such diver sion is intended this year. Last year's provision of a special 12% per cent, subsidy on rural rates out of the Highways Fund is to be continued.

Superannuation Funds "The Government has not found it possible to deal with the whole problem of the superannuation funds this year, as was intended," states the Minister. "It, is proposed to repeat the special subsidy ( £ 200,000) to maintain the position of the funds until next year, when it is the intention of the Government to give the matter the serious consideration it warrants." A sum of £73,000 is set aside by the Government for the expenses of the general election. There is an additional £ 24,000 for education, and the programmes for naval, land, and air defence require votes increased by £52,000.