BUDGET POINTS

Manawatu Standard, Volume LXI, Issue 193, 17 July 1941, Page 6

BUDGET POINTS

STATE FINANCES. FEATURES AT A GLANCE. Summarising the Financial Statement in the House ot Representatives last evening, the Minister ot Finance quoted the following points:— In spite of the withdrawal of large numbers of our ablest men lor n.u purposes production during the latest year for which .figures are available lias increased. The previous excess of withdrawals from the Post Ofhce baviims Bank accounts lias given place to°an excess of deposits amounting to £3,864.000; amounts standing to the credit of depositors on May 31 last was the record sum of £63,960,000. Export values reached the record total ol £71,200,000. The favourable balance of trade available for interest payments, debt reduction, and other charges was the record amount ot £23,300,000. The Public Accounts lor the fiftli year in succession showed a surplus, that lor last year amounting to £1.726,000. The Government will have to meet heavy charges m connection with the cost of. providing added storage accommodation and lor the change over from butter to cheese Subsidies payable to primary producer* amount to" £1,398,000. The trading banks have agreed to reduce overdralt rates to a minimum of. 4 per cent, and a maximum of 6 per cent, with a corresponding reduction in deposit rates. To help in the stabilisation of prices, subsidies are being provided ior bread, sugar, and coal and other commodities will be stabilised, in price as soon as the detailed work is completed. The retail price index in the Dominion lias advanced by 05 per cent, only as compared with 85 per cent, in Australia and 275 per cent, in the tinted Kingdom. Last year’s surplus ol £1,726,000 is being transferred Horn the Consolidated Fund to the War Expenses Account and it is proposed to transfer a further £1,500,000 during the present financial year. Some adjustment of income tax procedure will be provided for during the present session of Parliament. There will he no increase in taxation during the current

J< The sum of £600,000 has been set aside to meet the cost ol medical benefits if agreement is reached with the doctors. The estimated expenditure on the social security benefits during the vear amounts to £14,6/3.000. The benefits will be extended, providing f ami I v benefit for the first child under the same conditions as now operate ioi the second and subsequent, children ; increasing from 5s to 10s per week the allowance payable to an ago bone fieiary in respect of his dependent wile and each of his children; extending the maximum benefit for invalids with wife and children to £4 lUs per week; increasing from 5s to 10s pci week the allowance for children of war veterans. A soldier’s domestic allowance of Is per day will l>e paid to the families of all soldiers where there are children. The estimates of war expenditure during the present year total £69,700.000. The pay. . allowances, and allotments of all soldiers will continue for three months after they are reported killed or missing. It is proposed to raise war loans in the Dominion for £10,000,000 at 2} per cent, and 3.per cent, interest. It is anticipated that at least £3,000,000 will he subscribed this year to National Savings Accounts and Bonds. Plans tor rehabilitation, repatriation, and postwar expansion are in preparation. A War Damages Bill to cover loss through enemy action will bo. introduced during the present session of Parliament. Tlie overseas debt apart from war debt, has been reduced by £3,903.000. during the past year. Tlie war . costs incurred overseas up to March 31 last, amounting to £5,988.000, have been repaid Jo the United Kingdom Government.. Internal war borrowings for last financial year amounted to £11,886.000. Ihe debt diflniciled in the Dominion, including the war debt, increased by £26. 012,000 during tlie year. Since 1935 tlie overseas debt, apart_from war debt, lias been reduced by £5,716,000. It is proposed to spend £12,950.000 loan money on national development during the present financial year. In all 3966 State houses were hunt in 1940-41, making a total of 10.425 from the inception of the scheme to March 31 last;