The Press Monday, April 30, 1923. Revenue and Expenditure.

Press, Volume LIX, Issue 17750, 30 April 1923, Page 8

The Press Monday, April 30, 1923. Revenue and Expenditure.

In his Budget last year the Prime Minister estimated that the balance (£7,531,367) of the accumulated eurplus would be drawn upon to provide for the 'balancing of the expenditure and to furnish means for the carrying on of public works. As we have seen the expenditure was lower, and the revenue higher, than the estimate, and the ordinary revenue account showed a surplus of over £1,300,000 for the year. If public works had been financed, according to custom, out of loans, and no debt had been repaid, the accumulated surplus would have grown to over £8,800,000. But as over three millions of it was 'used for debt cancellation, it stands at £5,637,090. It is interesting to note the use that has been made of the surpluses since March 31st, 1912. The year 1912-13 Began with a balance of £807,276 in the Consolidated Fund, and the surpluses in the eleven years from April Ist, 1912, to March 31st, 1922. amounted altogether to £25,671,6*25. From this amount sums totalling £2,175,000 were transferred direct to the Publio Works Fund, £14,171,811 was applied to debt reduction or capital expenditure (chiefly' the latter), £1,200,000 was added to the London Reserve Fund, and now a further £3,159,960 has been used for debt cancellation and £60,000 for the support of the Discharged Soldiers' Depreciation Fund. Of the surpluses (totalling nearly 24|. millions) collected since 1915, none has been, applied to the reduction of taxation.

Mr Massey has indicated, however, that in the current year he will propose reductions in taxation amounting to two millions sterling. This he can apparently easily afford to do. The 'bloated expenditure has dropped sharply, and, we hope, will be still further reduced, or at least not increased,, and the sources of revenue are yielding so weli that, unless something quite unforeseen happens, the tfrime Minister will be able to Balance/his Budget ■without askine for a larger sum from the payers of land and income-tax than was paid in the past year. The receipts from income-tax (3f millions) are still enormously greater than they were before the war, and no larger, but a smaller, sum should be asked for. With the recovery of our foreign trade' and internal business, a sufficient sum can be obtained from payers of income-tax even ,if the rates of taxation are cut down very drastically. Even if they were cut down by half the Prime Minister could -balance, his accounts, and it is high time that the Balance of accumulated surpluses (or a largo part of it) was. devoted to the relief of the taxpayer. It is a great advantage' to the Government lo have such a large balance in hand, but it is not in accordance with sound practice that such a balance should be permitted to persist. Apart from other considerations, such' an arrangement of accounts as leaves this balance in the Treasury has the disadvantage of stimulating demands for increased expenditure and of affording the Socialists an excuse for protesting against a policy of economy. The sooner this balance is reduced to the normal million or so, the better it will be.