BRITISH BUDGET

Grey River Argus, 2 April 1932, Page 5

BRITISH BUDGET

BALANCE ATTAINED Income Tax Increase £34,500.000 IN SAVINGS. CUSTOMS ABOVE ESTIMATE. (British Official Wireless.) RUGBY, March 31. The financial year ended to-day, and the complete Treasury returns for the* year are published. The Treasury statement, accompanying the abstract of accounts, states that the budget has bee n balanced, with a surplus of £364 000, after providing £32,508,000 for the redumption of debts. This result has been achieved notwithstanding the decision to limit the amount paid to miscellaneous revenue from the exchangeaccount to £12,750,000, including interest, instead of £23,000,000, including interest. a s contemplated last SeptemRECEIPTS. The national accounts show that, th* revenue in th e year amounted to £770,963,000, and expenditure £770,599.000. The revised budget, presented last September, forecasted Exchequer receipts from income tax of £272,000.000, and from the surtax of £73 000.000. The amounts received in the year are, respectively £287,400,000 and £76,700 000.

It will bo observed, that not merely war? the estimates of the yield of income tax and surtax realised, but they provided a surplus of £19.000,000 towards meeting the deficits on other heads of revenue. On the other hand, estate duties only yielded £65 000,000, which is £18,000,000 less than the budget estimate, while stamps, which were estimated to produce £20,000,000, fell short by £3,000.000.

The Post Office net revenue was £700,000 less tha» expected. There is a further shortage in receipts from sundry loans, and miscellaneous. These two latter heads were estimated at £5,820 - 000, and realised £4,372,000. The difference is due mainly to the reduction in the amount paid t° miscellaneous revenue from the exchange account.

CUSTOMS. Customs and excise revenue were estimated to produce a total of £253,000,000. The actual receipts exceeded this sum by £3,000,000, but of this about, £2 000 000 is on account of the now impost duties under the Abnormal Importations Act, the Horticultural Products Act, and the Import Duties Act. EXPENDITURE. The expenditure on supply services was £12,500,000 less than the September forecast, th-e reductions realised having been £34,500,000 against. £22.000,000 contemplated in September. On the supply services, substantial savings are shown. The original budget estimate of last April was £439.000,000, and in the revised financial statement of last September, this was increased to £473,800,000, owing mainly to the decision to stop borowing for unemployment insurance and roads, but before taking into account the economies proposed in the second budget. These economies were estimated to save £70.000.000, in the full year, and £22.000.000 in the remainder of the current year. In fact, the Exchequer issue has proved to be £439,200,000, showing a saving of £300,000 on the revised estimate. The total saving in the past year, therefore amounted to £34 - 500,000. The total expenditure-of £770.500,000 was thus £12.500.000 less than was -estimated in the revised budget. DEBTS. O n the expenditure side, the permanent debt charge, as revised by the September budget, was fixed at £322,000,000, which included £32 500,000 for debt redemption. The whole of this has boon issued and applied in the manner provided. In regard to the Treasury credits,, it is learned that bills amounting to 30,000,000 dollars, which matured on the 29th in New York, have been repaid, and the balance, amounting to 900,000 000 francs, of the credit given by the consolidation of French banks, has been paid off. In- each case, the Treasury retains the right to rc-borrow until twelve months after the grant of credits in August and September.

The last loan of £2,500,000,000 francs from the French public has not been paid.

Surplus Explained

EXTRA THREE MONTHS’ INCOME TAX. INCLUDED IN REVENUE. (Received April 1 at 10.30 p.m.) LONDON, April 1. 4 4 The Times,” in a leading article, says: The Budget results are highly gratifying, proving that the country has been able to support a gigantic burden, but it must be remembered that the surplus has been achieved by (he Collection of one and a-quarter .years’ income tax in a single year, which cannot be repeated. The tax receipts are bound to fall this year, because the taxes will be levied upon lower profits. The 1931-32 tariff revenue, which tentatively has been estimated at thirty millions, is not likely to be realised.

Extent of Surplus

WHY IT WAS LESS THAN FORECASTED.

(Received April 1 at 10 p.m.) LONDON, April 1. Referring to the British Budget, the t ; ban Pres s says: The realised

surplus of £364.000 for the financial year is so considerably below the fore casts that it may appear to be disappointing, but it must be read in conjunction with the fact that the Exchange Reserve has been drawn on to the extent of only £12,750.000, whereas in the Budget estimates it was proposed to draw twenty-three millions'. Had the original plan been followed, the surplus would have amounted to £10,500,000. The smaller draff on what is really a capital fund leaves a balance for later use. “DAILY MAIL’S” CLAIM. LONDON, April 1. The “Daily Mail” says: “The Budget achievement is wonderful. No other country in the world can show such an excellent result. The income tax and surtax yield is magnificent. After one of the darkest periods of ! our financial history, daylight is at last visible.