GLITTERING SURPLUSES.

New Zealand Herald, Volume LXVI, Issue 20243, 1 May 1929, Page 20

GLITTERING SURPLUSES.

SOUTH AFRICAN FINANCES. PROFITS FROM DIAMONDS. [from our own correspondent.] . CAPETOWN. March 22. Two glittering surpluses, one actual and tho other prospective, were announced by the South African Minister of Finance, Mr. Havenga, in his annual Budget speech. .For 1928-29 the surplus—including balance brought forward for the previous years—is £2,990,000. Of this £350,000 will go toward debt redemption and the balance to loan account for capital expenditure. The surplus for 1929-30, which is estimated at £1,113,000, will be used for concessions in respect of income tax, customs and excise.

Diamonds sold from the State diggings since May last have produced £2,450,000. In addition, there are stones in hand valued at £4,000,000. Mr. Havenga will dispose of his *£2,450,000 windfall thus: £105,000 for reimbursement of expenses in starting the State diggings; £352,000 for tax, and the balance, close on £2,000,000, to loan account. In the coming year it is anticipated the loan account will benefit, by a further £2,000,000 from the State diggings. The income tax concessions comprise a continuance of the present 20 per cent. rebate; allowance for children to be increased from £6O to £75, and the age limit raised from IS to 21 years; widows and widowers to bfi treated in iho same way as married income tax payors: and farmers to receive abatements in respect of certain classes of capital expenditure. A new road policy is to bo inaugurated under which a free grant <-.f £1,000.009 will be made to the provinces over the next three years. New irrigation works are to be initiated and the boring programme is to be extended. The Government is to assist in the rehabilitation cf farmers in the drought-stricken areas. One of the most interesting of all announcements made was that :i 12-day airservice from London to South Africa, via Egypt, will 'be established in co-operation with the British Government and be ready to start in two years. The Onion Government will contribute £BO,OOO per annum over live years, payments not to begin for two years. A sub-headquarters it is stated ,will be established in the Union, with workshops for engines and aeroplanes, employing South African personnel wherever possible.