The Bay of Plenty Times WEDNESDAY, APRIL 22nd, 1942 RECORD BRITISH BUDGET

Bay of Plenty Times, Volume LXX, Issue 13623, 22 April 1942, Page 2

The Bay of Plenty Times WEDNESDAY, APRIL 22nd, 1942 RECORD BRITISH BUDGET

Britain's financial year closed on March 31, and exactly 14 days later, that is, on April 14, the budget debate was opened by the Chancellor of the Exchequer in the Hofise of Commons. And, what a Budget! The greatest in British history, remarkable for the magnitude of the sum, and remarkable also for the severity of the taxation imposed upon the people. And what is equally remarkable is the equanimity with which the increased taxation has been received by the people. It is worthwhile stressing the fact that the Budget was available to the House within fourteen days of the close of the financial year. This is due to the fact that the national finances are not made the plaything of political parties. All parties are interested in seeing that the finances are properly administered and that the people are not taxed to carry out some whim of the party in power. On the whole, British finance is clean with a minimum of corruption. The expenditure for the year 1942-43 is estimated at £5,286,000,000, an increase of £510,000,000 over the previous year, due entirely to the Avar. It is a staggering amount, but the British people do not complain, for they realise that immense sacrifices must be faced if the war is to be won and our liberties maintained. To meet this growing expenditure the Chancellor has been obliged to impose fresh taxes, and those taxes cover every section of the people. And on the whole, the taxes are fairly spread, and it is this fairness that prevents complaints. But even with this increased taxation the Chancellor will be unable to meet the enormous expenditure, without drawing upon the savings of the people, and he must be careful to avoid inflation. So far the possibility of inflation has been held in check, and that will be continued. The Chancellor is drawing heavily on the savings of the common people, and in the past financial year these savings totalled the magnificent sum of £909,000,000. The rationing and other restrictions which have been increased should enable the people to save a greater amount this year, and therefore it is possible that the Chancellor will receive from this, source well over £1,000,000,000 or enough to cover one-fifth or 20 per cent, of the total expenditure. The rest of the money required will be borrowed in other ways, but chiefly from the banks. Thus it will be seen that it is the national credit that is paying for the war. Britain is getting deeper and deeper into debt but the nation cannot stop to quibble over this. The debt will climb down, but perhaps not as fast as it has climbed up. After the close of the war there will be little easing of taxation, and as the revenue comes in, and expenditure falls, the Treasury would be able to repay debt and particularly the savings certificates. The people will need this money.

It is to be hoped that the war will end this year, for the nations would be unable to endure such heavy taxation much longer, together with the loss of manpower. Already some millions of men have been lost to the world, and millions more must be lost before the war ends. What effect this would have on world economics it is difficult to forecast, but that it will be very serious is abundantly clear. This must change our economics, or rather we may have to face them from a different angle. It seems that mutual help will be the order of the day, and not the worship of Mammon. But will the war end this year? Both sides are longing for this, for everyone is war weary. The war position should be clarified in about eight weeks' time.