Australia’s Budget Record for Peacetime

Grey River Argus, 22 August 1949, Page 5

Australia’s Budget Record for Peacetime

SYDNEY, August 21. Tobacco, cigarettes, petrol, and a wide range of other goods are expected to be cheaper after the Federal Budget is introduced next month. The Federal Cabinet has approved the budget, which contains a cut of £25,000,000 in indirect taxation—customs and excise by £13,000,000 and sales tax by £7,000,000. However, any reduction in the prices of many goods may not last long, because of rising production costs. The Government is trying to' cheapen the cost of plant and materials to keep down production costs. The lower customs duties will apply mainly to plant and materials from abroad. The Budget will be a peace-time record for expenditure —about £560,000,000 in the year ending June 30 next. The Federal Cabinet has approved of a 25 per cent, over-all cut in dollar imports. The Minister for Post-War Reconstruction, Mr Dedman, made a report on the London dollar talks, recommending the cut. The Cabinet decided to ask the Government’s Dollar Committee to investigate and intensify its efforts to increase Australian exports to the dollar countries. It is unlikely that the Government will decide on a dollar loan. It is understood that the Prime Minister, Mr Chifley, regards this as a last resort.