War Finance

Timaru Herald, Volume CXLVIII, Issue 21645, 4 May 1940, Page 8

War Finance

IN his first war Budget the Australian Federal Treasurer proposes to raise a further £20,000,000 by taxation, £9,700,000 of which will be by a direct levy upon the people. In addition he anticipates borrowing £50,000,000 from the public in the current financial year. The total war commitments for the Commonwealth in the next financial year will be £79,000,000, making a total for the first two years of the war £125,000,000. To some extent the people of Australia are to be envied in knowing so soon the extent of the demands they have to meet and there is no reason why New Zealand taxpayers should not know by now what is expected of them.

The Government must be well aware of the expenditure necessary for war purposes, but so far the only announcement yet made was that broadcast to the country many weeks ago by the Minister of Finance. He then mentioned that Ihe war Budget for the year would be something like £33,000,000, of which £20,000,000 would be provided by a loan from the United Kingdom. The ri:ma ini ng £13,000,000 would have to come from the people. War finance is an urgent problem, the most urgent before the country at the present time. Everybody knows that taxation must rise, but business is seriously handicap through being kept guessing as to the intentions of the Minister of Finance. Parliament is not due to meet until well on into next month, and there may be delay in presentation of the Budget until as late as August. There is no justification for this and any effort at speeding up would be generally appreciated.