BUDGET OF £549,000,000

New Zealand Herald, Volume 79, Issue 24369, 3 September 1942, Page 4

BUDGET OF £549,000,000

AUSTRALIAN FINANCES £440,000,000 FOR THE WAR •CRerd. 1.35 a.m.) CANBERRA, Sept. 2 A record Budget, providing for a total expenditure of £549,492.000, was introduced by the Federal Treasurer, Mr. J. Chifley, in the House of Representatives to-night. Of this amount £440,000.000 is to be spent on the war. It is proposed to finance this huge sum principally by loans, r l axation and other receipts during 1942-43 will, it is estimated, provide £249,000.000, leaving a deficiency of approximately £300.000,000. No alteration in the income tax was announced, but the entertainment tax will bring in £3,250,000. and additional customs and excise revenue will amount to £14,200,000 in a full year. Details of this tax, which will presumably be imposed on tobacco and liquor, will be announced later. The entertainment tax will commence tft 3d on an admission charge of Is and increase by 2d for every 6d by which the admission charge exceeds Is up to os. Above os the increase is 3d for every 6d above ss. A reduction of approximately 25 per cent will apply to "flesh and blood " shows. This year, said Mr. Chifley, the Government faces the problem of finding £300,000,000 which is the gap between the estimated expenditure and estimated revenue. The excess spending power of the people must be transferred to the Government to pay the fighting forces and for labour and materials used in producing munitions and war supplies. While ielying to a large extent on the voluntary efforts of the people, the Government is resolved that its payment will not be evaded. Mr Chifley said: "Last year we received £120,000.000 from public loans. If we double that amount this year we ■will receive £240,000,000 which will be four times that received in 1940-41. This would leave £60.000.000 to be provided from savings bonds and savings certificates. This is about the British rate of contribution to small savings, and with our higher wages should be capable of accomplishment." Expenditure for the Army,_ Navy, and. Air Force will amount to £415,000,000, POWERS AFTER WAR AMENDING CONSTITUTION '{Kecd. 1.40 a m.) CANBERRA, Sept. 2 " The Government has been giving close consideration to the vitally important question of post-war reconstruction," said the Federal Treasurer, Mr. J. Chifley, when introducing the Budget in the House to-night. He added: — " The Government has accepted the recommendation of a Cabinet subcommittee that it is necessary to invest the Commonwealth Parliament with legal powers sufficiently wide to save the nation from the chaos which is likely to result unless the Commonwealth Parliament is able to deal with post-war reconstruction on a national basis. "Broadly, our post-war aim must be the physical development of our country, linked with expanded production and an increased population. By these means employment will be assured to our people and security to the children of Australia. "Power to control prices and production is an essential adjunct to any progressive policy of physical development. Such control is possible to-day only because of our war powers. Our present powers would disappear with the end of the war, and they must be continued by constitutional alterations. "The Government, therefore, proposes to introduce a bill to achieve the required amendment to the Constitution."