SOUTH AFRICAN BUDGET

New Zealand Herald, Volume LXX, Issue 21506, 1 June 1933, Page 11

SOUTH AFRICAN BUDGET

► , —— EXTINGUISHING DEFICITS MINISTER OUTLINES PLANS REVENUE FROM GOLD MEETING, FARM BONDS By Teleirraph—!?ress Association—Copyright CAPETOWN. May 30 Tlio Minister of Finance, Mr. N. C. Bavenga, in concluding his Budget speech in the House of Assembly today, emphasissd proposals whereby deficits of £7,000,000 and £3,000,000 would be extinguished and the Budget balanced. This, he said, had been made possible by tlic disappearance oi: party divisions. After allowances for capital expenditure, the Government would take 10 per cent of the difference between tho standard price of gold, £J 4s 9d, and £6 per lino ounce. That would yield £6,000,000. While it lefused to take over farmers' mortgj ges, the Government was allocating a sum the interest on which would meet !.-} per cent of the interest on all farm bonds, and it would expect creditors to accept a maximum of 5 per cent as 1 >ng as necessary. The Government was assured of the support of a large groip of bondholders. Regarding creditors who were not willing io co-operate, the Government, through taxation., would appropriate all the interest they received in excess of 5 per cent. The interest subsidy would extend to arrears estimated at £2,000,000. Mr. Havenga appealed to bondholders to allow arrears to be capitalised, for which purpose the Government was appropriating £1,500,000. The present export subsidies in the interest of farmers would bo continued.

Tin} Labour Department would be allocate! £'i>oo,ooo to relieve urban unemployment. The surtax%?@n fixed interest wouhl be reduced to a flat rate of 5 pev cent. Life assurance companies woull be exempt from the surtax. The Minister said the consumption of factory-made cigarettes had decreased by 80,000.000. Consequently an extra duty on cigarette tobacco of Is a lb. would te imposed. Tie Union's delegation to the World Ecoi.omic Conference would do its utmost. to obtain a restoration of the gold standard.