BETTER DAYS

Evening Post, Volume CXV, Issue 148, 26 June 1933, Page 7

BETTER DAYS

.AUSTRALIAN FINANCES

NEXT YEAR'S DEFICITS

(From "Tha Post's" Rtpr«serit«tlv«.) SYDNEY. June 15. * It say's much for the improved condition of Australia's finances that tho latest; meeting of the Loan, Council, which includes representatives of all the Governments, should have ended with so little turmoil and without any serious dispute • with the authpritics of the Commonwealth Bank, which institution has been called upon year after year to finance the deficits of the various States and the Commonwealth. la accordance with the Premiers' Plan, laid down when the country faced the greatest financial crisis, in its history, the aggregate. deficits for the year beginning next month have been limited to £8,500,000, and even this will allow the Commonwealth and some of the States, particularly New South Wales, to give relief by way of reduced taxation and reduced railway freights and fares. Actually it is unlikely that the total deficits will exceed the amount ot the contributions "to the national sink^ ing' f lirid— £7,000,000. The latest meeting of -the Loaa Council marked the first completed year of a definite effort by the Commonwealth and the States to rectify the financial position freed-from the hindrances of the Lang policy in New; South' Wales. It was stated that; notwith* standing the legacy of debt and deficiency, apart from confusion left . byj the Lang Administration, the present New South Wales Government had found it possible to reduce taxation by, approximately £1,500,000, represented by unemployment relief tax, reduced freights, and other minor relief. Present estimates are jthat New South' Wales will produce-a deficit of not more than £4,200,000, this figure being £10,000,000 less than the deficit for 1931-32. For the next financial. yeas New South Wales does not expect a de» ficit greater than £3,950,000—an improvement of more than £500,000 upon' the original estimate, when the Plan was laid down. • ■ ; REMARKABLE IMPROVEMENT. < A combination of the results of the' Commonwealth and all the States for the year just closing shows net deficits ■■ of £5,760,000, after providing for siiik* ing funds totalling £ 7,500,000. This re« suit, taken in conjunction with remissions of taxation to: date, shows a re« markable improvement in Australian' finance. It is undoubtedly the chief con-, tributing factor to the satisfactory con* versions that have been effected abroadj and to the large rise in Australian securities since June, 1932. At the *6n. ference the representatives of the Commonwealth praised' the results achieved by the States in adhering to the basic provisions of the Premiers' Plan, and special reference was made, to. the. progress of New South Wales. The Premier of New South Wales encouraged the members of the Council by saying that with a rise of 5 per, cent, in revenues, and, a reasonable'fall in external interest and exchange he would be able to balance the : Budget within twelve months. Figures submitted to the Loan Council • disclosed that progressive re* ductions in the aggregate deficits had been made as follows:— >■ ■ f < ■: COMMONWEALTH AND STATES.' 1930-31 ....... £25,370,000 > 1931-32 v ...... •£20,811,000 1932-33 ...... t£ 5,500;000 7/ •First year of plan. tSeeond year of -,->:,;SfeMj^fe«i^:&pianv*Sf*:^';;>':''-^' •■-■'" Until tho v,Commonwealth/ Govern^ ment's Budget proposals are formulated no figures for the third year of the plan can be supplied, A remission of taxation, which has been mentioned, would reduce the Federal surplus for the next year. The aggregate', deficits for the States alone are as'follows:— 1930-31 ...V., £14,610,000 1931-32 £20,822,000 1932-33' ...'..., •£9,000,000 1933-34 * ...... ,*£ 8,500,000 > ;; •Estimated. *' The £17,346,000 which the Loaa Council has decided will be available to the seven Governments for public works during the coming financial year, will be allocated a.s follows:— Commonwealth .... '£326,000 i New South Wales .. £7,000,000 i Victoria £3,217,000 ' Queensland ....... £ 2,400,000 South Australia .... £1,500,000 Western Australia .. £2,670,000 Tasmania £233,000 The proceedings at the Loan Council have been responsible for a ' general feeling that Australia is over the worst, and that if prudent administration continues the future is bright. All that is wanted now is a general improvement in world conditions that would bring about an increase in the price of primary products. _ A gleam of hope from the Economic Conference is eagerly awaited. '