WAR BUDGET

Wanganui Chronicle, Volume 87, Issue 231, 30 September 1943, Page 5

WAR BUDGET

RECORD LN AUSTRALIA NO TAXATION INCREASES PROPOSED <By Telegraph—Tress Association —Copyright, Recd. 11 p.m. Canberra, Sept. 29. No new direct or indirect taxation is propose:! in the record-breaking Budget of £715,000,000 introduced in the House of Representatives to-day by the Federal Treasurer, Mr. J. 15. Cnifley. Taxation will provide £273,000,000 and other receipts £39,000,000, leaving a deficiency of £103,000,000. This will be met by loans and Treasury hills. The Federal Treasurer admitted that he did not expect to obtain more than £300,000,000 in loans and would have to find £103,000,000 by Treasury bills, of which £259,000,000 are already in existence. War expenditure for 1943 to 1944 will amount to £570,000,000—an increase of £8,000,000 — and other expenditure to £145,000,000 —an increase of £37,000,000. To the end ot June last Australia’s war debt amounted to £731,000,000, with interest at the rate of £20,000,0000 a year. The total cost of the war had reaches £1,107,000,000. Reciprocal aid io th* united States last year was £59,000,000 and this year it is expected to reach about' £100,000,000. The main increase in the Budget is not far war but for other expenditure, which is up £37,000,000. The first payment to the Government's National Welfare Fund, established as part of the plan for Society Security, is due this year and is estimated at £29,750,000. War and widows’ pensions will cost more than last year. Mr. Chifley said Australia’s total working population was now 3,370,000, of which 1,370,000, or over 40 per cent., were engaged in the fighting services or defence construction and the manufacture of munitions. Including those producing food, clothing and other essential supplies and services, more than 50 per cent, of the population are engaged in the war effort. The great diversion of the working population from civil requirements to war needs had about reached its limit. Two main impediments to the expansion of production —transport and manpower—were both now receiving special attention.

Mr. Chifley said there would be no relaxation of controls over civilian spending and consumption, neither would the restrictions be suddenly relaxed in the immediate post-war period.