BRITISH FINANCES

Chronicle (Levin), 3 October 1946, Page 5

BRITISH FINANCES

BETTER BUDGETING OUTCOME MAY EVENTUATE Received Wednesday 11.35 p.m. LONDON, Oct. 2. Appraisals of the condition of the British nationul linances at the cnd of the iirst half of the iiscal year, maiuly agrec that the expenditure and revenue ligures so" far justify liopes of a better budgetary outcome for the year than Air Dalton predicted in April, says the Australian Associated Press special correspondent. A £22,000,000 fall in ordinary revenue to September 30 is onlv one-fifth of Air. Dalton 's estimated decline for the i'ull linancial vear and the £35,000,000 drop in income tax will yield only about one-seventh of the deciine forecast for the whole year. All tax revenue items liave put np a good showing except excise wliere the eut in beer production which was estimated to cost the Treasury £4S,000,000 in the fuil year, has left its nuirk. With full economies yet to be realised in the supply service disbursements, the expenditure is down by £93.1,000,000 compared with the first half of last year or nearlv half the Budget's anticipated decline of £1,963,000,000. Some quarters therefore look for the linal outcome of the vear's accounts to be substantially better than the £725,000,000 defieit f'orecast blit there is unfavourable eomment on Air. Dalton 's failure to bridge the gap between expenditure and revenue. Arr. Dalton in April hoped to avoid anv large new borrowing from the city but seems doomed to disappointment because of the unsat isfaetory low level of smnll savings. Arr. Dalton estimated small savings to amount to £520,000,000 in the full year whereas the first. six montlis pi'oduced only £130,000,000. Tf the autumn savings eampaign result falls short of offieial expeetations, increased borrowing from the money market is inevitable and Afr. Dalton mav fmd difliculty in fnlfilling his promise of further relief in taxation.