BRITISH TREASURY

Wanganui Chronicle, Volume 80, Issue 78, 2 April 1938, Page 9

BRITISH TREASURY

CHEERING SURPLUS REVEALED BIGGEST FOR FOUR YEARS STRONG NATIONAL ECONOMY REVENUE UP, EXPENDITURE DOWN [By Telegraph—Presp Assoriatio ; rxht} LONDON, March 31. A cheering start for the Chancellor of the Exchequer (Sir John Simon), who will introduce his first Budget on April 26, is afforded in the Treasury returns showing a realised surplus at the end of the financial year of £2B,- ' 786,006 as compared with Mr. Neville Chamberlain's estimated surplus of £252,000. The year’s revenue amounted to £872,580,000, which was £9,480,000 above the estimate. The expenditure was £843,794,000, which was £19,051,000 below the estimate.

The Budget would normally have been exceptionally favourable, but the rearmament programme alters the situation. The surplus will, in accordance with the Defence Loans Act, 1937, be available for use in the coming year to meet defence expenditure which otherwise would have been met from borrowed money. In the Treasury returns income-tax brought nearly ten millions above the estimate. Stamp duties, chiefly owing to the heavy decline in Stock Exchange business, fell five millions below the estimate

The surplus is the biggest for four years.

Defence expenditure from the Budget and from borrowing totalled £262,000,000, an increase of £76,000,000 over the previous year. The Daily Telegraph regards the surplus as a signal testimony to the inherent strength of Britain’s national economy, but believes that though Sir John Simon will probably be able to rely on the aggregate tax revenue in the coming year being equal to last year, he is unlikely to be able to budget for an increase thereon.