The National Accounts.

Press, Volume LIV, Issue 16155, 8 March 1918, Page 6

The National Accounts.

The particulars of revenue and expenditure given out by the Minister of Finance, and his comments upon tliem, present some striking features with which wo have not the space to deal in any detail to-day. "We may remark, however, that the figures point to the final balance, or ''surplus" in the Consolidated Fund, being even more largely in excess of tho Budget Estimate (which was absurdly and unreasonably low) than the Minister's last monthly statement indicated. For the eleven months the revenue has increased (as compared with the corresponding period of 191G-17) by £2,575,138, and the expenditure by £771,398. The revenue is keeping up far beyond the estimate, and the expenditure is ircreasing far less than tho estimate. Where tho Budget forecasted a decrease of over £GCO,OOO in railway revenue, the decrease for 11 months is only £53,209. The Customs receipts were expected to fall by over £900,000; for eleven months the decrease was only £438,093. On these two items alone the estimate, it is likely, will be exceeded by even more than the £800,000 which we forecasted a month ago. Tlio expenditure was put down in the Budget at 2 millions more than in 1910-17; it is quito clear that it will, hardly come within a million of that. When it is remembered that tho balance of revenue over expenditure last year was 4J millions, and that the revenue this year will show a far greater increase than will appear on the expenditure side of the accounts, it is obvious tliat an enormous surplus will bo the final result. And now there comes to pass exactly what wo foretold a couple of years ago. A huge surplus, obtained bj levying sharp imposts on a small section of tho community, coupled with a policy of ruthless borrowing, brings tho Minister out at last with the intimation that, the taxation system will not be revised. It will be satisfactory to those already subject to heavy taxation that they will not have to bear heavier burdens, but tho unsoundness of leaving the taxation on its present narrow basis is not a thing that the Government can be proud of. Wo must, for tho present, however, postpone a fuller discussion of the Minister's statement.