THE BUDGET IN BRIEF

Press, Volume LXXXIII, Issue 25269, 22 August 1947, Page 6

THE BUDGET IN BRIEF

Taxation In Main Unaltered INCREASES IN PENSIONS

To the overwhelming majority of taxpayers, no relief from taxation is given in the 1947-18 Budget, presented to the House of Representatives last evening by the Minister of Finance (Mr W. Nash). For Social Security beneficiaries and disabled former servicemen and war widows, the Budget provides for basic increases of rates of 5s a week. The economic pensions under the War Pensions Act are also increased by ss. The increases take effect from October 1. The child allowance of 10s a week for every child under 16 years of age has not been increased.

Superannuated Government employees will receive an additional bonus of 6s 8d a week, in most cases, up to £335 a year, the bonus disappearing at £422. Some relief from taxation for those on small incomes is given in the elimination of the 33 1-3 per cent, super tax on unearned incomes where taxable income does not exceed £2OO. The exemption decreases above £2OO and ceases at £4OO.

Subsidies to hold the prices of bread, butter, and milk at present levels will amount to £3,600,000. The existing subsidy on eggs will be continued. Part of the increased prices in tea will be met by additional subsidy and the remainder will be ‘‘taken into account in fixing retail prices.” Consolidated Fund taxation is estimated to bring in £89,710,000, and other receipts are estimated at £19.150.000. making the total revenue £ 108,860,000.

Social Security Fund expenditure is estimated at £40,039,000, the family benefits being £13,195,000. The transfer from the Consolidated Fund is £16,000,000, £2,000,000 less than last year.

Additional costs to the Consolidated Fund “arising out of the Arbitration Court’s decision increasing wages” are estimated at £2,350,000, £210,000 being for increased subsidy to hospital boards, £140,000 for increased war pensions, and £2,000,000 for increases in departmental votes for wage and salary increases and for stores.

Proposals submitted by Government departments and local bodies for a works programme are estimated to cost £37,500,000. The programme for this year will absorb £25,400,000 of public funds.

An acute shortage of labour for State and State-subsidised works remains. Manpower available for such wdrks is 18,500. The shortage in various branches of industry is 33,000, and Mr Nash said it was recognised that State works must be kept down to the barest minimum.

Expenditure on capital works is estimated at £26,875,000, against an expenditure of £15,600,000 last year. All will be financed out of new loan moneys. Under its coalmine nationalisation programme, the Government is setting aside £2,500,000 fbr the purchase of mines.

No further borrowing will be required for the War Expenses Account, in which expenditure is estimated at £13,600,000. The cost of the armed services, including J Force, is £5,900,000. The Dominion’s total debt is now £634,751,000. less than one-quarter now being held overseas. (Fuller details on Page 8.)