BRITISH BUDGET SURPLUS

Press, Volume LXXIV, Issue 22367, 2 April 1938, Page 15

BRITISH BUDGET SURPLUS

REVENUE IN EXCESS

OF ESTIMATE

YEAR SHOWS BALANCE

OF £28,786,000

MONEY TO BE AVAILABLE FOR

DEFENCE PROGRAMME

(UNITED PRESS ASSOCIATION COPYRIGHT.)

(Received April 1, 11.55 p.m.)

LONDON, March 31,

A cheering start for Sir John Simon, Chancellor of the Exchequer, who will introduce his first Budget on April 26, is afforded in the Treasury returns showing that the surplus at the end of the financial year is £28,786,000, compared with Mr Chamberlain’s estimated surplus of £252,000. The revenue amounted to £872,580,000, which is £9,480,000 above the estimate. Expenditure was £843,794,000, which was £19,054,000 below the estimate

The Budget this year would normally have been exceptionally favourable, but the rearmament programme alters the situation. The surplus will, in accordance with the Defence Loan Act of 1937, be available for use in the coming year to meet defence expenditure, which otherwise would have been met from borrowed money.

Income tax brought nearly £10,000,000 above the _ estimate. Stamp duties, chiefly owing to the heavy decline of Stock Exchange business, fell £ 5,000,000 below the estimate.

The surplus is the biggest for four years. Defence expenditure from the Budget and from borrowing, totalled £ 262,000,000, an increase of £76,000,000 over the previous year. The “Daily Telegraph” regards the surplus as a signal testimony to the inherent strength of Britain’s national economy, but expresses the opinion + hat though Sir John Simon will probably be able to rely on aggregate tax revenue in the coming year being equal to that of last year, he is unlikely to be able'to budget for an increase.