AUSTRALIAN BUDGET

Otago Daily Times, Issue 23831, 10 June 1939, Page 19

AUSTRALIAN BUDGET

UNEXPECTED SURPLUS SYDNEY, June 3. Unexpected buoyancy of Federal revenue—with the saving on previouslyanticipated National Insurance expenditure, and the collection of more than £1,000,000 from the special motor chassis tax—will enable the Treasurer (Mr R. G. Menzies) at the close of the financial year, to announce the eighth successive Commonwealth surplus. The year's figures are much more satisfactory than could have been foreseen when the Budget was framed, and a surplus for the year of at least £1,000,000 is now expected. This will be small, by comparison, with the surplus of £3,500,000 in 1937-38, and those of some previous years, but it will be a welcome contribution' to the heavy commitments for 1939-40, which will necessitate substantially increased taxation. „ .', ~ Defence expenditure, officially estimated at £17,000,000 for the current year, will reach at least £26,000,000 next financial year, and in 1940-41 is expected to touch £30,000,000. Though a substantial proportion of this will De met by borrowing, new taxation, to bring in at least £5,000,000 in the coming financial year, may be imposed in the first Menzies Budget. Further taxation increases in 1940-41 are inevitable, if the present world tension, continues. This year's surplus has been made possible by the failure of National Insurance plans and by the practice of paying into general revenue taxation specially raised by a duty on imported motor chassis to pay a bounty on motor vehicles manufactured in Australia.