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DEBT RETIREMENT AGAIN IS SHELVED TO BALANCE BUDGET TORY CAUCUS STUBBORN If the Ontario Government effects a balanced Budget this year it will manage it, The Globe learns, at the expense of a second straight renege on its annual ordinary debt--retire-- ment obligations. > 4 \ _ These, it is understood, would have | netted some $7,000,000 in additional \revenue, and would have taken care | of at least $5,000,000 in dsbt obliga-- | tions--the amount which the Govern-- | ment last fall repeatedly, informally, ;pledged itself to retire next October. '_ But the caucus is reported to have | raised all sorts of ruction regarding | the power tax, on the ground that \ Hydro, which would have been a{f-- | fected, should remain immune from | taxation. Warm opposition was also | voiced to any two--cent gas--tax rise. ' As a result, the power levy has been dropped, and the gas tax is to be in-- creased from five to six cents only-- Last year, for the first time since the debt--retirement plan was inau-- gurated at Queen's Park, the Govern-- ment failed to meet its instalment, althcough by doing so it lessened its dsficit for the year by some $2,500,-- 000. The accumulated debt obliga-- tion at the end of this fiscal year will amount to more than $6,000,000, but the Government has no intention, it is understood, of paying it off, or any part of it. In fact no payment on debt is said to be on the program until the end of the fiscal year 1933, when obligations in this regard will have piled up to between $10,000,000 and $12,000,000. No Provision Included. Payment Is Deferred Sec-- ond Time, as Obligation Mounts to $6,000,000 Pian to Redeem Pledges Through Gasoline Tax Is Opposed Confirmation of this "shelving" policy was not cbtainable from Queen's Park last night, but, in view of the fact that no provision whatever for debt retirement was included in Hon. Edward A. Dunlop's Budget presenta-- tion yesterday, it is generally believed that the Government is again reneg-- ing. Otherwiss, a $5,500,000 deficit, instead of the $365,000 forecast sur-- plus, would be evidenced on Oct. 31 next. * Stubbornness of the Tory caucus at Queon's Park is rumored to be in-- directly responsible for the situation in which the Government now finds itself. Prior to the commencement of the Legislature session, the Govern-- ment had under advisement a two-- cent gas--tax incroase, and a one-- twentieth of a cent per kilowatt hour levy on all electricity generated with-- in the Province. Caucus Opposes. not to seven as the Cabinet had been hoping. A balanced Budget is now out of all question if debt obligations are to be met, so the debt payment is to be chucked overboard again, as it was last year. _ _ _--The annual Hydro debt however, is provided for in l&?y 'B;l::.' lop's Budget. -'\I'\"'O'\."\"\II\'N'\II\' 0 9 hsn 9 Tw 9 Tsd 5 o t Tsc o 9 "has o 6 Ts 6 3 es 6 # s 6 $ "S a $ * _orporationProfits, -- Gasolineand Liquor Hit by New Levies Ontario's new taxation, as an-- nounced yesterday by Provincial Treasurer Dunlop--provided the Legislature prorogues before Eas-- ter--is likely to become operative from April 1, or around that date. In brief, this taxation is: A 1--cent rise in gas tax, making 6 cents instead of 5 that the mo-- torist will pay on every gallon of engine fuel. A 10--cent tax on every bottle of liquor and imported wines bought at a Government liquor store, and a 25--cents--per--gallon tax on all domestic wine sold from wineries. Higher amusement levies. Al-- though the schedule has not been made public as yet, all tickets from 5 cents up are affected, it is understood. Extension of existing taxation on banks, insurance companies, telegraph and telephone com-- panies. _ Tax of 1 per cent. on net profits of incorporated companies doing business in this Province. Law stamp increases. Mar. 1X -- The New Taxes 4# Nce p t Provincial Treasurer An-- nounces $365,000 Sur-- plus, to Be Made Effec-- tive by $5,000,000 Retrenchment Program and Additional Imposts of $4,300,000 A $365,000 surplus for the current fiscal year--to be made possible by 'means of a retrenchment program of | some $5,000,000, plus new tax levies 'approximating $4,300,000 -- was an-- tnoun:ed in the Ontario Legislature | yesterday, in connection with the | presentation by Hon. Edward A. Dun-- 'lop of his second Budget statement since assuming the post of Provincial Treasurer at Queen's Park. LARGER AMOUNTS FROM AMUSEMENTS Motor Fuel to Pay One Cent More--Collection on Spirituous Liquors to Be Ten Cents a Bottle and From Domestic Woines Twenty -- five Cents a Gallon -- Ac-- counting System Is _----Defended The estimated surplus replaces a 1931 operating deficit of $456,902, and will be achieved, Mr. Dunlop revealed, even after 'expending $2,500,000 on direct relief to unemployment. | _ There was no surprise in the fore-- cast surplus or in the drastic slash in administrative costs. Barring one or two items, the programed new taxation also had been pretty well forecast. Distribution of Taxes. This taxation, with the revenue an-- ticipated from it, is distributed as follows: Corporations tax ..... $2,000,000 Amusements tax ..... 200,000 CGas tX ..,....:s«..s .1,300;,000 Liquor, spirits and im-- As outlined to the House by the Treasurer, the corporations tax amendments, which will be placed be-- fore 'the Assembly early next week, will include an extension of the pres-- ent taxation on banks, life insurance companies, fire insurance companies, miscellaneous insurance companies, loan companies, and telegraph and telephone companies. Profits to Be Taxed. A profit of 1 per cent. on the net profits of incqrpoza,tpd.cogmpapdes do-- ing business in Ontario is also pro-- posed by the Government. With the returns made under the Corporations Tax Act it is further proposed to in-- corporate the returns now made to the Provincial Secretary's Depart-- ment, and to include the filing fee now paid to that department, with & principal office and a branch offics tax, thus eliminating the Euplication of returns which are now required of all incorporated companies. ; ported wines ....... Wine (domestic) .... Law stamps ......... E £LDUCT yv.--vv-- PmE t noty Under the amusements tax in-- $4,210,000 500,000 60,000 100,000