BRITISH BUDGET OUTLOOK

New Zealand Herald, Volume LXXIII, Issue 22351, 24 February 1936, Page 8

BRITISH BUDGET OUTLOOK

Confident forecasts of the result of the current Bi'iti'sh Budget are already being made in London, although the financial year has still five weeks to run, a most important period in the revenue sense. It says much for the buoyancy of the revenue—a reflection of all-round trade improvement—that a surplus of several million pounds is anticipated, especially as heavy charges have been added to the Budget in the course of the year. The Chancellor of the Exchequer allowed £4,000,000 for supplementary estimates, but these are now expected t,o absorb over £20,000,000. Increased expenditure by the defence forces, principally incurred by demands made on them in the Abyssinian crisis, and by the Ministry of Agriculture for subsidies to beef and other producers, largely accounts for this item being so greatly exceeded. The increase is expected to be offset in part by savings on certain items of estimated expenditure. The expectations in this direction cannot be 'substantial, as the nine months' accounts showed only small savings, principally in debt services, while total expenditure had risen by £26,300,000. Against that there was an increase in total revenue at December 31 of £22,700,000, including £17,600,000 from taxes. The yield from Customs and death duties was running well ahead of receipts in the previous year and also .ahead of the estimates. The returns from the other major source of revenue, income tax, which come in mainly during the current quarter, are expected at least to fulfil expectations, as the business revival continues to make headway. If anticipations are realised and a surplus can be announced in spite of the concessions made to taxpayers and to the Civil Service last April, and the extraordinary charges which have since had to be provided for, the result will constitute another notable achievement for British public finance. While Britain is balancing her Budget, most other great nations are struggling with mounting deficits.