£39,000,000 SURPLUS.

Star (Christchurch), Volume LXVI, Issue 20283, 18 April 1934, Page 1

£39,000,000 SURPLUS.

Half Salary Cuts Restored and Burden on People Lightened. £20,500,000 LESS INCOME TAX iUnited Press Association.—By Electric TelegrapTi.—Copyright.) (Received April 18, 10.35 a m.) LONDON, April 17. TN HIS BUDGET SPEECH, which was delivered before a *■ crowded house, Mr Neville Chamberlain said that the Budget would show that the Government’s efforts had borne fruit and that a new spirit of hope and confidence had been established. This position was due to the expansion of the Home market. Though the country has regained its place as an exporter, the export trade was still far behind the figures of a few years ago. The actual surplus of £31,000,000 did not represent a true figure as the sinking fund and interest had been paid from the income. The real surplus was about £39,000,000.

A saving of £4,500,000 on supply serices was largely due to decreased nemployment, provision for which ad been more than covered by the ipplementary estimates. Customs ive a surplus of £4,000,000 from the nport Duties Act, £2,000,000 came om the Ottawa Agreement Act, and 1,000,000 from the special Free State uties. Beer yielded £5,000,000 above expecitions, and the spirits, wines and quors revenue increased. The tea and agar yield declined. Inland revenue receipts were 14,000,000 up. The income-tax and aper-tax were the same as 1933. The death duties included the largJfi payment from a single estate in le history of the tax. Post Office receipts were £1,400,000 bove the estimates of last year. The surplus, said Mr Chamberlain, lust be devoted to the reduction of le National Debt. This would nearly counter-balance le £32.000,000 borrowed last year to leet the deficit. The total deadeight debt reduction was £21,500,000. ; was not proposed to provide for the lyment of the war debt to America, - reparations payments to Britain. Taking a reasonably optimistic view : the course of trade, it was to be cpected that the import duties vield ould rise to £24.000,000. The estilated total of Customs and excise ivenue was £298,000,000. The estilated total of ordinary revenue on the listing basis of taxation would vield 727.000.000, leaving a surplus of 29,100,000. This would be the largest irplus for fifteen years, and permitted ixation relief. The horse-power tax n motor-cars would be reduced from 1 to 15s, with a corresponding reducon in the motor-cycle tax. Half Salary Cuts Restored. On the accepted principle of devotig the surplus to relieving the worst uftefers when the crisis was acute, alf of all salary cuts would be reared from July 1. costing £4,000.000. ’nemployed benefits would be fully :stored from July 1, costing £3,600,000 nis year. There would be no remision of indirect taxation, but income ix would be reduced bv sixpence, 'he reduction in the standard rate of icome tax at a cost of £20,500,000 this ear would be the most direct benefit o the country and a stimulus to the xpansion of trade.