COMMONWEALTH BUDGET

New Zealand Herald, Volume LXIX, Issue 21277, 2 September 1932, Page 10

COMMONWEALTH BUDGET

In introducing the Commonwealth Budget for 1932-33 the Prime Minister of Australia was able to point to a surplus of £1,314,000 from the past year's operations. Its existence was previously known, and so was the fact that relief from funded war debt payments, consequent on Britain's extension to Dominion obligations of the Hoover moratorium, was the only factor making it possible. Mr. Lyons budgets in the current year for a modest surplus of £12,000, but admits freely that if these payments have to be, resumed there will be a deficit of £4,900,000. When the Premiers' Conference met in June the Prime Minister stated that the aggregate, deficits for this year, as estimated by Treasury officials, would be £20,000,000, that for the Commonwealth being £3,500,000. The gathering after long consideration agreed that the combined figure must be reduced to £9,000,000. In the original scheme for the gradual balancing of Budgets, the aggregate deficit for 1932-33 should have been about £6,000,000. Therefore the Premiers' Conference realised that the steps planned in May, 1931, were not possible of attainment. The Commonwealth, however, aims at ja balance this year. It is notable that the plan to achieve it does not contemplate any new taxation. Indeed, there is the promise of certain remissions for the special benefit of the primary producer. On the other hand, the gold bounty—surely an anomaly in view of the premium now commanded —is to be suspended until the price falls, and the wine bounty is to be severely reduced. Savings of nearly £3,000,000 have been planned, including reductions in Parliamentary and Civil Service salaries, and in pensions, and a reduced incidence of the maternity bonus. The old age pension is to fall to a maximum of 15s a week, or a lower level than that now paid in New Zealand. It is not likely to be a popular Budget. Too many people will feel the effects of the pruning knife, but it is one which recognises the grim realities of the situation! It is generally admitted that there is little possibility of raising more revenue by increased taxation. The effort to do it would hamper the process of commercial and industrial revival on which hopes are now centred. Therefore, however unpalatable his measures, Mr. Lyons has adopted the only possible means of achieving the balanced Budget so essential in view of Australia s overseas loan maturities soon to be faced.