THE BRITISH BUDGET.

Auckland Star, Volume LIII, Issue 70, 3 April 1922, Page 4

THE BRITISH BUDGET.

The British Treasury is able to issue, ' on the very first day of the new financial year, the figures for the previous year. •Before we consider these figures, we may again point out that it has been much prompter in this respect than the New | Zealand Government. Iv 1920 our | figures were not issued until the end j of May, and last year the date was May ! 19. It remains to be seen whether Mr. Massey will be earlier this year, or ■ whether he will take full advantage of ' the period allowed him by the law. The state of British finances may he set out j in the following comparison between the j estimates for 1921-22 and the realisation: | I Estimated. Realised. I Receipts .... £1,216,650,000 £1.124,879,000 Expenditure.. 1,039,000,000 1.079.180,000 Surplus ... £177,000,000 £45,693,000 These are the figures reduced to their simplest form. In reality, they are subject to several reservations. Realisation of war assets was included in the estimated receipts—critics consider it should be set off against the war debt — and against this sum was placed a smaller sum for war commitments, which were a factor of uncertain size. The revenue receipts are favourable in view of the doubts expressed during the year. The "Times" stated in August, apropos the issue of Supplementary Estimates, that half the total surplus had already disappeared., and the loss of revenue, added to the difficulty of realising war assets, would, it was feared, much more than wipe out the remaining amount. To have come through so bad a trade year with a surplus is creditable. The results of the Geddes Committee's proposals for reduction of expenditure will be 6cen in the current year. But while tiie situation might be much worse, no one can contemplate with equanimity the continuance of thousand-million Budgets in Britain. Quite a while ago this level was admitted to be impossible with due regard to the health of trade, and, indeed, of the whole community. The business world is clamouring for a reduction of taxation. The Federation if British Industries informed the Chan■ellor of the Exchequer a few weeks ago .hat industry ''could not continue to icar the present burden of taxation for mother year without grave danger of a inancial crisis of the first magnitude." Taxation, said the Federation, was absorbing liquid reserves required for Dther purposes, and it was forcing traders to draw on capital and to borrow from the banks. In his coming Budget, which, unlike the New Zealand Budget, is delivered early in the year, the Chancellor must consider these representations, and it may be expected that, assisted by the departmental and Geddes "cuts" he will csi inxtte lor a Kreat reduction in expenditure. The Floating Debt stands at the dangerous figure of £1,029,000,000, which, however, is £350,000,000 less than it was nine months ago.