COMMONWEALTH FINANCES.

Wanganui Chronicle, Volume LXVI, Issue 17478, 24 January 1919, Page 5

COMMONWEALTH FINANCES.

A SERIOUS OUTLOOK

GOVERNMENT SHARPENING

PRUNING HOOK.

Received 10.20 p.m.. January 23. ■ : ; • SYDNEY, January 23. At a conference of Federal State Ministers, Mr Wattt dealt with the financial position. He said the oustlook for the Commonwealth was serious. He foreshadowed reduced revenue from taxation, while 'the expenses of line Australian army had kepfo up, and repatriation had cost- scores of millions. In view of these factors, the Commonwealth proposed To r diminish" the present payment* of 25s per h&ad of surplus revenue to the State ..pAfligressivelv by 2s 6d yearly, till itwaSs 10s per* head :" 1926. He addad tba£ sooner 0r.1." the Stages would have to do wither «y Commonweafith help. The reduc-.. a would not sitiarfc -ill Vlie financial year 1920-21. Dealing with the increase in Commonwealth expenditure, he said there had been an increase of over two millions yearly yi old age pensions. In the early stages of iihe scheme many pensions were refused. Now over 99 per cent, of those entitled were accepted. He indicated thai the maternity bonus in fuiioire would be confined to those who really needed it. On the question of co-or-dinating borrowing, Mr Wa'-it outlined a selieme for the creation of an Empire War Deb: Commission, r.o takf over the war debts of the United Kingdom and Dominions and other parts of the Empire, etch Government having' representatives on *jke Commission, all debts at- 31st December next to be takcm over, and all sinking funds and resumption funds then existing to be vesr>ed in the funds of the Commission. He stated thafl the Federal Government was ranking necessary 'representations to the* various Governments intcresi'ed, n-conimending the adoption of the proposal. Mr Wafct indicated lihe possilnli*C *>f including various Sit ate debts as part of the scheme.