FEDERAL BUDGET.

New Zealand Herald, Volume LXVIII, Issue 20922, 11 July 1931, Page 11

FEDERAL BUDGET.

•DEFICIT £17,215,662.

increase IN TAXATION.

WAGES NOT TO ESCAPE. SALES TAX RAISED. BENEFIT of hoover plan. • gy'l't-.J^Taph—Press Association—Copyright. (Received July 10. 9.15 p.m.) CANBERRA. July 10. .Increased taxation is the outstanding feature of tlie Federal Budget, which was delivered I\V the Treasurer, Mr. E. G. Theodore, to-day. ''The normal rate* of income tax payable by individuals and companies, will be increased all round bv 5 per cent, and the existing supertax of 7k per cent, on income from property will be increased to 10 per cent. The additional revenue from these sources is expected to yield £1,500,000. : Tlieio is to be a general lowering of exemptions, by which ifc is hoped that a ' largo number of wage-earners who have hitherto escaped taxation, will pay the tax- . Tli® sales tax, which is now per cent., and which the Government had intended to increase to 5 per cent., will be increased to 6 per cent. Primage duties are' to be increased immediately, rising to 10 per cent., according to the class of gooes imported. Reducing the Deficit.

Mr. Theodore said the Federal deficit this would be reduced to £5,176,300 during, 1931.32, but with the concessions under Jlr. Hoover's plan there was a good chance ©f ills being reduced to £1,148,300. The unfunded debt in London was £38,075,000, of which the Australian banks held £33,075,000 and the Westminister Bank £5,000,000. The neb amount owing by New South flfales to' the Commonwealth was £3,£34,000. ...>

Id 1 spite of the severity of the depreslion, £4,644,395 was applied during the year to. the redemption of Commonwealth debls, and also £3,514,000 to the ,redemption o:[ State debts.

The gross public debt of the Commonwealth. had increased during the year by £13,647,000, and now stood at £335,594,000. The gross debts of the States now aggregated £767,000,000, showing an. increase of £3,636,000 in the year. Tile estimated receipts from all taxation in this financial year would be £120,C00 less than last year, when the total was £50,420,000, The new sales tax was expected to bring in £8,500,000, and the primage duties £4,250,000. State's Default in Interest. *

The Budget also contains a proposal for s reduction of 20 per cent; in the salaries cf (fovernment employees.Mr. .Theodore spoke emphatically of the failure of the New South Wales Governseril to. pay the interest due on her overseas debt. This had brought the total accumulated deficit to £21,049,662. The Treasurer said authority for a loan of £7,000,000 was already available to meet the shortages in the revenue account, and £14,000,000 more would be required to meet the accumulated deficit to June 30, 1931. Mr. Theodore estimated that the revenue from taxation and other sources would amount to more than £54,000.000 for the current year. He estimated that the suving on war repatriation and defence would be £5,250,000. EEDEEAL FINANCE. emergency bill denounced OPINION OF THE SPEAKER. CANBERRA. July 10. Thij Speaker of the House of Representative!!, Mr. W. J. Makin, speaking on the Financial Emergency Bill, denounced the Government. He said it should seek a mandate from the people for ills change of policy. Rather than support the Government in its latest move he would leave public life. PASSAGE THROUGH HOUSE. MOST BITTER DEBATE. (Received July 10, 9.15 p.m.) CANBERRA, July 10. •The Financial Emergency Bill was Jaksed by the House of Representatives 4 fter an all-night sitting, when there was One of the most bitter debates on record. ■■Mr. J. A. Beasley's group opposed the till all through. One of them, Mr. J. L Eldridge, was suspended. , COST OF DEFENCE. ECONOMIES being made. SMALLER naval personnel. t \ (Received July 10. 9.15 p.m.) "> CANBERRA, July 10. Tile* Minister of Defence, Mr. J. B. Chifley, announces that further economies, s the extent of £407,526, are being made 1,1 the Defence Department in the present • Sear. The .Government has decided to reduce naval personnel by 150 men. Reis also being applied to the ClVl] an d aviation establishments.