FEDERAL FINANCES

New Zealand Herald, Volume LXXI, Issue 21805, 21 May 1934, Page 6

FEDERAL FINANCES

IMPROVED POSITION PROBABLE SURPLUS • / ' MONEY TO MEET WHEAT RELIEF [from our own correspondent] SYDNEY, May 10 As the Federal financial figures for the 10 months of the current financial year' are being collated, indications are increasing that the Budgetary position will be fully in keeping with the progress figures that have been published during the last five months. If that is so the final result for the year will be about £750,000 better than the estimate. This means that not only will the Commonwealth anticipated deficit of £1,176,000 be wiped out, but there will be a substantial amount left over to meet the balance of the wheat relief, which has to be found from consolidated revenue. The removal at the end of the present /month of the flour tax, imposed with the object of giving relief to wheat farmers, has been well received, and may be taken as a true indication that Federal finances are more buoyant than was anticipated. One section of the> Cabinet was strongly opposed to the tax from the start, owing to the belief that it would increase the price of bread, a thing to be avoided ail; the present time, when there was such a large surplus of wheat. Actually the tax hi)s not yielded anything like the amount estimated, and already is £200,000 short. This means thai; the consolidated revenue will have to find almost £1,500,000 toward wheat relief, but it will be able to do so without feeling any undue strain. In some quarters it is thought that the removal of the flour tax is ail indication that the prospects of an early general election have increased. It is pointed out that no Government would be anxious to go to the electors while an unpopular tax was still in force. If the elections are to be held this year— September is the month spoken of —the public might have time to forget all about the flour tax before they are called upon to go to the polls.