BRITISH BUDGET

Waikato Times, Volume 113, Issue 18929, 26 April 1933, Page 7

BRITISH BUDGET

SATISFACTORY RESULT

DEFICIT OF £32,000,000. < AMERIOAN DEBT INOLUDED. CURRENT YEAR’S PROPOSALS. NO MORE DEBT PAY.MENTS. REDUCTION IN BEER DUTY. The British Budget, whloh was presented yesterday reveals a deflolt of £32,000,000, whloh Includes the debt payments to America, amounting to £20,000, 000. Chief among the proposals for the ourrent year are the omission of ahy provision for further debt payments, and a reduction of one penny a pint In the beer duty. United Press Assn.—Elec. Tel. Copyright. (Received April 26, 9.35 a.m.) , , LONDON,.ApriI 25. The main points of the Chancellor of the Exohequer, Mr Neville Chamberlain’s budget speocli in the House of Commons show that the result of the year 1932-33 is a deficit of £32,000,000 which would be m9t by borrowing. In face of the present strain, tills is as satisfying as surpluses would he in more prosperous times.

Excluding debt payments there is a surplus of £11,250,000" of current revenue over current expenditure. The beer revenue was £6,000,000 below the estimate, and was the lowest yield for 13 years. Twelve thousand persons who Were liable to surtax In 1931, were not liable in 1932.

Tiie Irish Free State duties yielded £2,500,000, tiie Ottawa duties £1,750,000. .

Mr Chamberlain gaid he did not propose to provide either for debt payment to America nor receipts from other countries, l'he year’s saving in interest would be £22,000,000. The real saving to-day compared with two years ago, would be £113,000,000. Dig drops in personal income \vc to shown by the surtax returns, which yielded £11,000,000 below the estimate, and the inoome tax which was £8,000,000 below. The Exchange Equalisation Fund had stood the test of experience, and Was keeping the exchange steady. It was estimated that the total revenue for the final year 1933-4 oil the present basis of taxation, would be £712,750,000. It was decided before America went off the gold standard that it would be necessary to increase tho Exchange Equalisation Fund, and it was realised that America’s action was in no wise related to the conversations With Other countries, which were prompted by purely Internal considerations. Among the budget provisions are:—■ A substantial Increase In the taxation of heavy road vehicles as from January 1, 1934, a penny per gallon will be levied on fuel, gas and lubrloatlng oils; The making of no provision for the redemption of the war debts; Beer duty to be reduced by 24s a barrel; thus effecting a reduction In the retail price of a penny on each pint.

Mr Chamberlain said he had been advised to reduce taxation even at the risk of not balancing the budget, but this seemed to him not in the best interests of the country. A shilling off the income tax would cost £50.000,000. “ Unbalanced budgets are the rule rather than the exception throughout the world, yet with world trade falling and prices shrinking an unbalanced budget will not reverse our ills. r l’he i'ncome tax rale will he unchanged. “ The United States share our desire for international eo-operatlou and though recent events involved anxiety we are hoping that President Roosevelt’s further proposals will promole renewed confidence."