CANADIAN BUDGET

Otago Witness, Issue 4074, 12 April 1932, Page 61

CANADIAN BUDGET

MINISTER’S OPTIMISM BALANCING ASSURED “DAWN OF BETTER DAYS” OTTAWA, April 6. Canada's debt has increased by 119,500.000 dollars for the fiscal year ended March 31, so the Finance Minister (Mr E. N. Rhodes) announced when delivering his Budget on Wednesday. Of this, 51,000,000 dollars arises from excess of ordinary expenditure over ordinary revenue. Special expenditure included 49,000,000 dollars for unemployed relief, and 55,000,000 dollars for wheat lioniis. The ordinary revenue was 327,719,000 dollars, and the expenditure 378,743,000 dollars. Striking a note ot vigorous optimism, he predicted that he could balance the Budget and meet all obligations. “ May I say I don’t propose to indulge in prophecy,, but I desire to record my firm convistion that we are not far removed from events which will herald the davvil of belief days.”

SPECIAL EXPENDITURE

UNEMPLOYMENT RELIEF

OTTAWA, April 0. Canada will completely balance her Budget on the usual Government services this year. Mr Rhodes said this was the considered view of the Government after consideration of revenue and expenditure. “ While unfortunately the estimate of revenue, which are conservately based, having regard to present conditions of business, do not cover the special expenditure on unemployment relief, nor the indirect liabilities arising out of financing the Canadian National Railways, it is nevertheless in our judgment as substantial a step in the direction of providing currently for every responsibility of the Government as would be in the public interest to make effective in any one year under existing conditions.” MANY TAXATION CHANGES. OTTAWA, April 6. As a means of balancing the Budget the Minister announced many taxation changes covering a wide field. The sales tax is increased from 4 to 6 per cent. A limited number of articles not primary products, but previously exempt, are made subject to the tax. The tax on all goods imported into Canada is increased from 2 to 3 per cent. Personul income tax exemptions are reduced 20 per cent., with an additional surcharge on the amount of tax payable, personal and corporate, on net incomes exceeding 5000 dollars. The tax of 1 per cent, on premiums received by insurance companies, except life and marine and certain forms of mutual fire companies, is reimposed. British and foreign companies have also to pay. The stamp tax on cheques and money orders over five dollars, promissory notes, and bills of exchange is increased from two to three cents on amounts up to 100 dollars and six cents over 100. A 5 per cent, tax is placed on all telegrams, cables, radio messages, and long-distance telephone calls. A 10 per cent, tax, with a minimum of 25 cents, is placed on sleeping car berths.

In view of the near approach of the Imperial Conference, the Minister stated that no change would be made in the Customs tariff.

ESTIMATED YIELD FROM TAXES.

OTTAWA, April 6.

To balance the Budget to meet the usual Government services the taxes announced by Mr Rhodes are estimated to yield 55,000,000 dollars.