BRITISH BUDGET

Wanganui Chronicle, Volume 90, Issue 85, 12 April 1946, Page 5

BRITISH BUDGET

RELIEF TO MANY AND PAIN TO FEW COMMENT IS MAINLY FAVOURABLE (Su*cißj Correspondent— N.Z.P.A-) Recd. 7.10 p.m. London, April 10. Perhaps the most noteworthy point about Britain’s Budget for overseas observers, who are not directly concerned with its taxation reliefs, is the fact that less than a year after the European war Dr. Dalton was able to announce that the country was not very far off balancing its internal finances.

Instead of an anticipated deficit this year of £1000,000,000, Dr. Dalton’s estimates show the deficit may not be more than £694,000,000. The difference is partly acounted for by the unexpected buoyancy of revenues.

When it is considered that in 1943,’ a year of peak deficit, the gap between expenditure and revenue was nearly £3,000,000,000, while it was £2,000,000,000 in the past year, there is a feeling that Britain need not take over seriously the comment sometimes heard abroad that the war left her bankrupt. Though Dr. Dalton places the estimated deficit e,t £694,000,000, he also points out that by deducting minal items,” like war gratuities and compensation payments, which were not properly part of the State's current account, but belong to the winding up of the war, the estimated deficit will only be £268,000,000. Dr. Dalton regards the fact that Britain is not far off a balanced Budget as “a most remarkable achievement.” But his critics are not oversanguine. in view of the tax reductions, that the attainment thereof next year will be as easy as he suggests. It also is pointed out that the Chancellor has based his estimates on the assumption that Britain will get the American loan. Should the loan not be secured, an adverse effect on internal trade’and revenue will occur. On the whole, British comment on the Budget is generally favourable, “optimistic” and “cautious” being the two adjectives most employed.

It is also remarked that it is one of the most artful Budget statements heard for many .years, giving relief to many an? pain to only a few. There probably is most satisfaction among the smaller wage earners. The reduction of a shilling in the pound income tax, announced last October, to gether with an increase in the earned income allowance of from l-10th. to l-Bth., the latter effective from next October, and new rate tables to be announced in October, mean that 300,000 people will no longer pay income tax.