FINANCIAL PROSPECTS.

Manawatu Standard, Volume LVIII, Issue 82, 5 March 1938, Page 9

FINANCIAL PROSPECTS.

ECONOMIC STRENGTH. SPECULATION IN BRITAIN. (British Official Wireless.) Received March 5, 11.10 a.m. RUGBY, March 4. The newspapers are beginning to review the . financial prospects for the next year, and speculate on the total expenditure for which the Chancellor of the Exchequer will have to provide in the Budget. It is generally assumed that Sir John Simon will raise over £100,000,000. The total is formidable and the fact that the financial authorities are facing the prospect with so little apprehension is a remarkable witness to the economic strength of the country. Against the higher expenditure stands the buoyancy of the revenue, which is the subject of optimistic estimates by several commentators. The city editor of the Times recalls that income tax next year will be levied on the business profits of 19361937, which, in the latter year, were estimated by economists to have increased 17 per cent, over 1936.

The next financial year, moreover, will bo the first full year of the national defence contribution, which was deliberately introduced by the Government last year to broaden the base of the business taxation, and to provide for the increasing demands on the defence programme. It is also pointed out tliat if the value of overseas trade continues to rise the Customs will be correspondingly higher.