BUDGET FOR SURPLUS

Hawke's Bay Herald-Tribune, Issue 45, 9 March 1937, Page 7

BUDGET FOR SURPLUS

-Presa Aflsn.-

British Chancellor^ Probable Method INCOME TAX AT 5/-

thy Telegraph-

-Copyn^ht.*

LONDON, March 7. Assuming that the Chancellor of the Exchequer requires the same sum as last year to meet debt charges, the total Budget expenditure for 1937-38 will be £855,000,000 and the total cost of armaments £90,100,000 higher, but, owing to borrowing, the taxpayer .will be required to meet only £10,100,000 ot this amount. The true mcrease in civil expenditure is only £6,700,000 and may be even less, therefore it seems that increa^ed taxation is unnecessary. The bouyancy of the revenue should even make a small rechietion possible. Nobody3 however, believes that there is the siightest hope of this. On the contrary, Mr Chamberlain will probably Budget for a surplus, fixing the income tax at five shillings, thereby enabling the extept of the Government borrowing to ^ be determinod by the revenue yield. The gilt-edged market finished the week raggedly, but this is attributed less to the budget than to Labour's success in the London County Council elections and fears of repatriation of hrench capital. The stock markets made a poor showing with the exception of rubbers, which are steadily advancing. Basemetal shares also are bouyant on furthar rises. The commodity and industrial market is quiet. The removal of the duty on pig iron discouraged irons and steels.