FEDERAL BUDGET

Greymouth Evening Star, 11 July 1931, Page 7

FEDERAL BUDGET

OVER 17 MILLIONS DEFICIT [DRASTIC TAXATION PROPOSALS [BY CABLE —PBESS ASSN. —COPYBIGHT.] CANBERRA, July 10. The Federal Budget was to-day delivered in the House of Representatives by the Treasurer, Mr E. G. Theodore.

The Treasurer explained that the Federal deficit was £17,215,662. He anticipated that this could be reduced to £5,176,300 during the 1931-32 financial year, but with' concessions under the Hoover War Debt Plan, (here was a good chance, he said, of Its being reduced to £1,148,300. The unfunded debt in London totalled £38,075,000, of which the Australian Bank held £33,075,000. The Westminster Bank held the other £5,000,000. The net amount owing by New South Wales to the Commonwealth, he stated, is £3,834,000.

The Treasurer stated that despite the severity of the depression, the sum of £4,644,395 was applied during the year to the redemption of Commonwealth debts, and there was also £3,514,000 applied to the redemption of State debts. The gross public debt of the Commonwealth had increased during the year by £13,637,000, and now stands at £386,594,000. The gross States’ debts now aggregate £767,000,000 revealing an increase o f £39,636,000 during the year. The estimated receipts from all of the taxation during this financial year will be £120,000 less than the receipts for the last year, when the total was £50,420,000. Increased taxation is the outstanding feature of the Budget. The normal rates of income tax payable by individuals and by companies will be increased all round by five per cent. The existing supertax of 7i per cent, on property income is being increased to ten per cent. The additional revenue derived from these two sources is expected to yield one million and a-half sterling. There is to be a general lowering of the income tax exemptions ■’whereby it is hoped that a large number of wage earners who have hitherto escaped such taxation will pay income tax. . The sales tax, which is now at per cent., and which the Government had intended to increase to five per cent, will be increased to six per cent. The primage rates are-being increased immediately, raising to as high as ten per cent., in instances, according to the cases of the goods imported. The new sales tax is expected to bring in £8,500,000, and the primage duties £4,500,000. The Budget also contains a proposal for a twenty per cent, reduction in salaries. Mr Theodore emphasised that the failure of the New South Wales Government to pay interest due on its overseas debt, had brought the total accumulated deficit to £21,049,66He said that loan authority for seven millions is already available to meet shortages in the revenue account, asd that fourteen millions more would be required to meet the accumulated deficit as to June 30, 1931. He estimated that the revenue from taxation and other sources amount to over fifty-four millions foi the current year. The saving to be expected on war reparation and defence expenditure will be five and a-quarter millions.

DEFENCE ECONOMIES,

CANBERRA, July 10.

. The Minister of Defence announces that further economies to the extent of £407,526 are being made in the Defence Department during the present' year. The Government has decided to reduce the naval personnel by one hundred and fifty men. Re'trenchment is also being applied to 'the civil and aviation establishments. FINANCIAL EMERGENCY BILL. CANBERRA, July 10. , The Financial Emergency Bill was 'to-day passed by the House of Representatives, after an all-night sit- ' ting, and one of the most bitter debates on record. The Beasleyites opposed the Bill all through, and one, Mr Eldridge, was suspended.