CANADA’S FINANCE

Manawatu Standard, Volume LII, Issue 108, 7 April 1932, Page 8

CANADA’S FINANCE

BUDGET DELIVERY. MINISTER’S OPTIAIISAI. (United Pre.ss Association —By Electric Telegraph—Copyright.) Received April 7, 10.20 a.m. OTTAWA, April 6. Canada’s debt increased by 119,500,000 dollars for the fiscal year ended March 31, so the Alinister of Finance, Air E. N. Rhodes, announced when delivering his Budget on Wednesday. Ot this sum 51,000,000 dollars arises from an excess of ordinary expenditures over ordinary revenue. bpecial expenditures included 49,000,000 dollars for unemployed relief, and 55,000,000 for the wheat bonus. Ordinary revenues amount to 327,719,000 dollars, and expenditure to 378,743,0U0 dollars. Striking a note of vigorous optimism, the Alinister predicted that he could balance the Budget and meet all tlie Dominion’s obligations. AllRhodes added: “Alay I say that I do not propose to indulge in prophecy, but I desire to record the firm conviction that wo are not far removed from events which will herald tho dawn of better days.”

As a means of balancing the Budget, the Alinister announced many taxation changes covering a wide field. The sales tax would be increased from four to six per cent. A limited number of articles not primary products, previously exempt, would be made subject to tax. The excise tax on all goods imported into Canada would be increased from two to three per cent. The personal income tax exemptions are reduced' 20 j>er cent, with an additional surcharge on the amount of tax payable, personal and corporate, on net incomes exceeding 5000 dollars. The tax of ono per cent, on premiums received by insurance companies, except life, marine and certain forms of mutual fire companies, is reimjiosed. British and Foreign companies are also to pay. The stamp tax on cheques, money orders over five dollars, proniisory notes and bills of exchange is increased from two to three cents, on amounts up to 100 dollars and six cents, on amounts -over 100 dollars. A five cent, tax is placed on all telegrams, cables, radio messages and long distance telephone calls. A 10 per cent, tax with a minimum of 25 cents, is placed on sleeping ear berths. In view of the near approach or tho Imperial Conference, the Minister stated that no change would bo made in the Customs tariff. BALANCING THE BUDGET. Received April 7, 12.50 p.m. OTTAWA, April o. Canada will completely balance her Budget on the usual Government services this vear. Air Rhodes said that this was the considered view of the Government after consideration of the revenues and expenditures. “While, unfortunately, the estimates of revenues, which are conservatively, based, having regard to tho present conditions of business, do not cover the special expenditures on unemployment relief, nor are the indirect liabilities arising out of the financing of the Canadian National Railways, it is nevertheless, in our judgment, as substantial a step in the direction of providing currently for every responsibility of the Goyernment as it would be in the public interest to make effective in any one year under the existing conditions.” YIELD FROAI NEW TAXES. Received April 7, 1.15 p.m. OTTAWA, April 6. To balance the Budget to meet the usual Government services the taxes announced by Air Rhodes are estimated to yield fifty-five million dollars.