FEDERAL FINANCE

New Zealand Times, Volume XLIX, Issue 11293, 19 August 1922, Page 6

FEDERAL FINANCE

ESTIMATED REVENUE REDUCED REPATRIATION PAYMENTS. SINKING FUND FOR AVAR DEBT. By Telegraph—Press Assn. —Copyright. Australian and N.Z. Cable AssociationMELBOURNE, August 18. It is estimated that tho revenue for the current year will bo £62,518,250, or 2194,557 above tho expenditure. The Government proposes to create a sinking fund of one half per cent, on the total amount of indebtedness, with the object of redeeming the war debt. Such a fund would extinguish the debt in fifty years. The estimated expenditure on war pensions for tho current year is £6,"50,000, a decrease of £275,000 and tho reduction is due to tho fact that tho physical conditions of tho pensioners have on tho whole improved. Expenditure on repatriation is estimated at £1,771,000, a decrease of £321,000, duo to tlie progress in tho re-establish-ment of eokliers in civil life. Tho treasurer {Mr S. M. Bruce) stated that the Washiugtou Conference had made it possible to make a large reduction in the defence expenditure, which he estimated -at £4,804,000 as compared with £6,642,000 last year. He foreshadowed a commission to consider the reclassifying of the public service, with a view to reducing its cost and securing better efficiency. Tho Government proposes, as far as possible, to rely on the local market for the raising of conversion and future loans. HINT OF REDUCED TAXATION. MELBOURNE, August 18. Mr Bruce, in his speech, foreshadowed taxation relief aa follows: —An increese in tho general income tax exemption of £lO4 and £156 per annum to £3OO for all taxpayers; reduction m the existing graduated income tax rates by 10 per cent.; reduction in the companies’ flat rate from 2s 8d to 2s 6d; removal of the war surcharge of 20 per cent, on the land tax; removal of the entertainment tax where the prioe of admission is less than one ■hilling; reduction of the duty on galvanised iron, iron and steel wire, wirenetting and tractors. He also hinted that Parliamentary salaries would be reduced from £IOOO to £6OO. PUBLIC SERVANTS WHAT THE GOVERNMENT PROPOSES. (Received August 18, 7.40 p.m.) MELBOURNE, August 17. In the House of Representatives the Treasurer estimated the expenditure on invalid and old age pensions for the current year at £5,467,000, due chiefly to the increase of tho payment from lfe to 15s. Aa part of the Civil Service reform it is proposed to remove ail cavil servants in receipt of over £3lO annually from the operation of the Public Service Arbitration Act. The Government does not see any method of reducing the salaries of public servants without causing a grave injustice. Legislation ia foreshadowed placing the Commonwealth Shipping lane under independent control.