HUGE WAR BUDGET

Gisborne Herald, Volume LXIX, Issue 20824, 1 July 1942, Page 3

HUGE WAR BUDGET

AUSTRALIA'S - BILL DEFICIT OF £100,000,000? USE OF BANK CREDIT (By Telegraph—Press ABsn. —Copyright.) (9.30 a.m.) SYDNEY, July L The Commonwealth will budget for a deficit of probably £100.000,000 for the next financial year, says the Canberra correspondent of the Daily Telegraph. The indications are that this deficit cannot be avoided because the Government has made it clear there will be no major tax increases. It is expected that the Government will ask the Commonwealth Bank to meet the estimated deficit by the release of bank credit. The Budget for the next financial year will provide for an expenditure of about £515,000,000—£400,000,000 for war and the balance for norma) commitments. It is estimated unofficially that the ordinary Commonwealth revenue will amount to about £220,000,000 and all types of loans will bring in another £200,000000. Of the figures at present available, the deficit for the current year will be about £70,000,000. The total expenditure for the year has been about £403,000,000, of which £300,000,000 has been for war and £103,000,000 for ordinary Commonwealth commitments. The total ordinary revenue amounted to about £200,000,000 and the loans brought in another £130,000,000. When this deficit has been carried forward the total deficit by June 30, 1943, will be approximately £170,000,000 —the biggest in Federal history. The Prime Minister, Mr. J. Curtin, and the Treasurer, Mr. J. B. Chifley, will discuss the Budget with the chairman of the Commonwealth Bank Board, Sir Claude Reading, and the governor of the bank, Mr. H. T, Armitage. Mr. Curtin announced that .the second Liberty Loan was oversubscribed by £2,250,000. The money was subscribed by 192,000 people. To the first £35,000,000 Liberty Loan. 243,000 people subscribed £48,000,000. The Premier of New South Wales, Mr. W. J. McKell, announced that the State surplus for the financial year ended yesterday would be substantial. For the first .time in many years New South Wales finances are in a healthy condition that is gratifying to the Government which has just completed its first year in office. It has been accomplished, although more than £1,000,000 has been spent on national emergency services during the year.