BUDGET TOTALS

Evening Post, Volume CXXIII, Issue 56, 8 March 1937, Page 9

BUDGET TOTALS

TAXATION PROSPECTS

SEVERE INCREASE THOUGHT

UNLIKELY

(Brilish Official Wireless.) (Received March 8, 10.50 a.m.)

RUGBY, March 7,

It is now possible to forecast fairly closely from the-Civil Defence, and other estimates already published, the total expenditure for which the Chancellor will have to budget. . '

The Civil Estimates, at £408,053,605, are up by £28,751,132 compared with the total for last year. The Defence Estimates total £.277,685,000, but only £197,685,000 is to come from revenue, which is an increase of £9,815,000 on last year's total. With requirements of revenue, the Department's total for the coming year 'reaches £619,635,205, or £39,974,432 more than fdl- the year now expiring. But the apparent increase is somewhat misleading: owing to > the coming into operation of the provision of the last Finance Act by which revenue and expenditure of the former Road Fund are taken into the ordinary accounts. When allowance is made for this change the increase is reduced to the neighbourhood of £16,500,000. Provided, therefore, that the charge for service of the debt, amounting last year to £235,300,000, remains approximately the same, as appears likely, financial writers in the newspapers take the view that the Chancellor will not have to ask the taxpayer iov. more than an additional sum of about £20,000,000, leaving £80,000,000 for defence not charged to revenue to be defrayed under the procedure of the Defence Loans Bill out of the realised surplus and borrowed money. SACRIFICES NOT ENDED. The opinion is generally expressed that, despite Mr. Chamberlain's warning at Edinburgh last night that the taxpayers have not reached the end of their sacrifices, he will be able to secure the additional revenue without any severe increase of taxation. Of such speculations as these the "Birmingham Post" remarks: "Though it is still too early for amateur Budgetmaking, it is by no means too early give thanks for the fact that these abnormally heavy demands can be presented to a nation which financially is in good heart, and is well prepared to meet them."

In a leading article on the same theme "The Times" says: "In any case the prospects for the forthcoming Budget are entirely reassuring."