FEDERAL BUDGET

New Zealand Herald, Volume LXIX, Issue 21277, 2 September 1932, Page 11

FEDERAL BUDGET

SURPLUS FOR YEAR TOTAL OF £1 <314,031 NO NEW TAXATION DRASTIC ECONOMIES SCALE OF SALARY CUTS By Telecraph—Press Association—Copyright (Received September 1. 9 15 p.m.) CANBERRA. Sort. 1 In the House of Representatives to-day the Prime Minister and Treasurer. Mr. J. A. Lyons, delivered the Budget. He said the year 1931-32 had closed with a surplus of £1,314.091. The revenue had amounted to £58,648,528, and the expenditure to £57,334,437. Mr. Lyons announced that there would be no new taxation, but the following economies would be effected : Ministers' salaries would be reduced 30 per cent; members' honoraria, 25 per e'ent; Federal public servants, £8 a year, on account of the fall in the cost of living. Old age and invalid pensions, for the same reason, would bo reduced 2s 6d a week. The maximum payable in future to pensioners would be 15s a week. The maternity bonus, now £4, was to be. restricted to families where the income does not exceed £2OB a year, instead of,

as now, £260 a year. This would save at least £60,000 annually. Big Saving in Current Year Mr. Lyons said it was also expected to save £1,100.000 a year on pensions, £SOOO on Ministerial and Parliamentary salaries, £240,000 on public service salaries. £44,000 by the reduction of the wine bounty, and £30,000 by suspending the gold bounty until the price of gold falls to £5 an ounce, making a total savine of £1,479,000. Expenditure next year would be brought down by £2,930,585, and a surplus of £12,000 was anticipated. Hov.-ever, this would be turned into a deficit of £4,900,000 if Australia had to resume her interest payments on the British war debt this year. Mr. Lyons said tariff redifctions would bi made during the year and the sales tax would be lifted off certain goods, lnrgely with the idea of giving relief to primary producers. Naval, military and Air Force activities would be continued along the usual lines, A committee would report, upon air mail contracts, existing and contemplated .Heavy Cost of Pensions The Prime-Minister went on to say that it was expected that war pension* would be nearly £500.000 less in the current year. The estimate for war, pensions was £6,950,000. Mr. Lyons expressed the opinion that the peak year had passed and said he expected a steady decline in war pensions in future. He mentioned old age and invalid pensions 20 years ago cost the country £2.000,000 a year, but last year the cost was more than £11,000,000. Referring to the effects of the depression upon trade and industry, and indirectly upon the public revenue, Mr. Lyons said that in 1929 eight companies showed a loss, but by la;\ year 83 had shown a loss. In 1929. the declared total profit of public companies was £16,775,000. In 1931 it was only £7,023,000. Country's Wonderful Recovery

The Prime Minister emphasised the wonderful recovery disclosed in the finances. He appealed to members and to the citizens to realise " the nature of the abyss from which we have been saved." The deficits of' the Australian Governments for 1931-32 had lien ,cut- down from the. contemplated £40.000,000 to £20,147.000, of which £13.570,000 represented the New South Woles deficit, thanks to the Lang Administration which had declined to adhere to the Premiers' Plan.