8.—6.

Approximately £2,100,000 of this increase will go to the Consolidated Fund, and the balance of £300,000 to War Expenses Account. The benefit of practically the whole of this additional revenue from income-tax will indirectly go to wai expenses through the transfer to that account of £1,950,000 death duties hitherto paid to the Consolidated Fund. In addition there is available for the Consolidated Fund £1,000,000 profits from the issue of our own silver coin. Reference was made to this item in last year's Budget but as it was not required then, it is still available. The additional revenue thus available for the Consolidated Fund from income-tax and silver-coin profits amounts to £3,100,000, and as only £1,150,000 is required to balance the Budget it is proposed that all the revenue from death and gift duties including the £1,950,000 that would otherwise be credited to the Consolidated Fund under the heading of " Stamp and Death Duties should go into the War Expenses Account. If this is done the budgetary position of the Consolidated Fund will be as follows: — Revenue. Taxation- — £ Customs . ■ • • • • • ■ 7,500,000 Beer duty .. • • • • • • 1,380,000 Sales tax .. .. • • • • 3,000,000 Highways .. • • • • • • 2,600,000 Stamp duties .. • • • • • • 1,650,000 Land-tax . . . • • ■ • • 1,000,000 Income-tax .. .. • • • • 13,550,000 Miscellaneous .. .. • • • • 225,000 30,905,000 Interest .. .. • • • • • • 2,800,000 Other Receipts .. • • • • • • 3,375,000 6,175,000 37,080,000 Expenditure. Permanent Appropriations— £ Debt services . • • • 10,671,000 Exchange . . • • • • 1,500,000 Transfer of highways revenue 2,583,000 Other permanent appropriations 380,000 15,134,000 Annual votes — Social services • • • • 11,834,000 Other services .. • • 9,816,000 21,650,000 Supplementary estimates and contingencies .. 250,000 ' 37,034,000 Leaving an estimated surplus of .. £46,000 Reverting to the War Expenses Account, to augment the revenue it is proposed to introduce a new scale of death and gift duties designed to piovide a further £750,000 per annum, or approximately £400,000 for the balance ol this financial year. The new scales reduce the exemption from estate duty from £1,000 to £200 and from certain succession duties from £500 to £200. In Great Britain the exemption from estate duty is £100 and in some o1 the Austialian States £200. The new maximum rates will be 50 per cent, for combined estate and succession duties in the case of estates of £70,000 and over devolving upon the widow and children, 55 per cent, when left to father, mother, brothei s, sisters nephews, aunts, and uncles and other blood relations within the fourth degree', and 60 per cent, when the successors are relatives outside the fourth

Silver coin profits.

Consolidated Fund Estimates 1940-41.

Revised death and gift duties.

6