Appendix “B”: The Financial Year in Australia, Effects of Labour Rule. (FROM OUR CORRESPONDENT)

Three and a half months have elapsed since the close of the past financial year, and it is only now that it can definitely be said how the figures for the year were shaped. Even now the New South Wales Budget for the current year has not been forthcoming, which is a serious inconvenience, because New South Wales has built up a heavy deficit, and the position needs righting. But it would be a blow to the Labour Party now in office to impose fresh taxation prior to the State elections just ahead, and so the question has been shelved. The Commonwealth Budget was delivered early in October, and five states have put forward their estimates—two within the past week.

State revenues expanded at a slower rate last year, as can be gathered from the following statement, while expenditures increased without check in two of the states:

The estimates for 1913-14 are composed of five Budget statements, and, in the case of New South Wales, allow for an increase of £400,000 in taxation, which the Premier foreshadowed, and an average growth in other revenues. Now, it will be noticed that in 1911–12 the combined revenues increased £3,913,000, but in 1912–13 the increase was only £1,778,000, or not one-half that of the previous year. But the expenditures, which increased £3,649,000 in 1911–12, further increased £3,092,000 in 1912–13—hence the combined deficiency.

With regard to the estimates for 1913-14, it will be seen that an increase of close upon £3,000,000 is allowed for, including further taxation in New South Wales and West Australia. Whether it will be realized is the unsolved problem. Revenues have lost much of their elasticity just now.