FEDERAL FINANCES.

Gisborne Times, Volume XXX, Issue 3591, 2 August 1912, Page 5

FEDERAL FINANCES.

THE BUDGET PRESENTED.

A SURPLUS OF £424,366

INCREASED DEFENCE EXPENDITURE PROVIDED FOR.

[UNITED PRESS ASSOCIATION—COPYRIGHT]

(Received August 1, 9.20 p.rn.) MELBOURNE, Aug. 1. In tin' House Mr. Fisher (Premier) delivered his Budget. The revenue for tlie year ended June 30 was £20.546,861, customs yielding £14,710,199' (an increase of £1,729,765), post office £3,916,599 (increase of £46,599), land tax £1,366,454 (decrease £3891), profits from coinage £156,489 (decrease £4240). Tlie expenditure was £20,121,995, leaving a surplus of £424,366, which is credited to the fleet and'old age pensions funds, making the total thereto paid and representing surpluses of previous years £2,261,541. Tiio amounts repaid to tlie States during the year totalled £5,944,425. The estimated revenue for the current year is £20.422.000, and. the expenditure £22,683,541, including £5,983,750 returnable to the States, £175,000 under the naval agreement, and £985,921 new works and buildings. Mr. Fisher indicated that there would be a large increase in the staff and facilities of tlie Postal Department, including ten wireless stations. The Defence estimate's provide for the establishment of an aviation school to train officers. Four machines have already* been purchased.

The Naval expenditure has been increased bv £370,407, covering provision for the year for the sea-go:ng crews of the smaller war vessels and gunboats and for four months for the new cruisers when commissioned. The military expenditure is increased bv £360.000, the universal training system necessitating large additional staffs, arms, general equipment, and the reorganisation of certain departments. The naval subsidy to Britain has been reduced by £200,000 to £175.000, owing to the Commonwealth taking over the warship Encounter. The estimated" expenditure includes £104,401 for the Port Augusta raiL way. Estimated Receipts. Mr Fisher continued that he estimated the customs and excise duty during the current year to yield £14.511,000. the post office £4,202,000, and land tax £1.300,000. _ . Thev expected to return £5,983. <SO to the' States. Old age pensions would absorb £2,405,000 and a maternity grant £5 per bead. £400,000. Tlie outlav on preliminary work on the Federal capital was £IIO,OOO. The number of persons qualified to receive old age pensions was 245.000. Tlie loss last year through the introduction of penny postage was £245,000. Reciprocity with New Zealand. .Mr Fisher touched on reciprocity with New Zealand and said he bad heard the views of a large number of representative New Zealanders. As a result he was hopeful that Australia would reciprocate at all events as tax as old age pensions were concerned. Ho thought that this would be settled at an early date and lie hoped that the basis of reciprocity would, however, be much broader. He was sure it would be broader on trade lines. There was no limit to the reciprocity he believed in-