BRITISH BUDGET

Hokitika Guardian, 2 April 1932, Page 5

BRITISH BUDGET

A SMALL SURPLUS

INCOME TAX INCREASE. fßritish Official Wireless.) RUGBY, March 31. Ihe financial year enued to-day, and the complete Treasury returns lor the year are published. the Treasury statement, accompanying the abstract of account,,, states that the budget lias been balanced, with a suiplus ol £364,090, alter providing £32,508,003 for the rej doiiiptjon of debts. I nis' result has been acnieved .notwithstanding the decision to limit the amount paid to miscellaneous revenue from the exchange account of £12,750,000, including interest, instead of £23,000,0b0, including interest, as contemplated last September.' The national accounts show that the revenue in the year amounted to £770,963,000, and expondtiure £770,599,000. The revised budget, presented last September, forecasted Exchequer receipts from income tax of £272,000,000, and from the surtax of £73,000,000, The amounts received in the year are, respectively £287,400,* 000 and £76,700,000. It will be observed, that not merely were the estimates of the yield of income tax and surtax realised, but they provided a surplus of towards meeting the deficits on other heads of revenue. On the other hand, estate duties only yielded £65,000,000, which is £18,600,000 less than the budget estimate, while stamps, which were estimated to produce £2,000,000 fell short by £3,000,000.

The Post Office net revenue was £700,000 less than expected. There is a further shortage in receipts from sundry loans, and miscellaneous. These two latter heads were estimated at £5,820,000, and realised £4,372,000. The difference is due mainly to the reduction in the amount paid to miscellaneous revenue from the exchange account.

Customs and excise revenue were estimated to produce a total of £253,000,000. The actual receipts exceeded this sum by £3,000,000, but of this about £2,000,000 is on account of the new impost duties under the Abnormal Importations Act, the Horticultural Products Act, and the Import Duties Act.

The expenditure on supply services was £12,500,000 less than the September forecast, the reductions realised having been £34,500,000 against £22,000,000 Ctmtempiated in September. 'On the supply services, substantial savings are shown. Tile original budget estimate of last April was £439,000,0110, and in the revised financial statement of last September, this was increased to £473,800,000, owing mainly to the decision to stop borrowing for unemployment insurance and roads, but before taking into account the economies proposed in the second budget. These economies were estimated to save £70,000,000 in the full year, and £22,000,000 in the remainder of the current year. In fact, the Exchequer issue has proved to be £439,200,000, showing a saving of £300,000 on the revised estimate. The total

saving in the past year, therefore amounted to £34,500,000. The total expenditure of £770,500,000 was thus £12,500,000 less than was estimated in the revised budget. On the expenditure side, the permanent debt charge, as revised by the September budget, was fixed at £322.000,000, which included £32,500,000 for debt redemption. The whole of this hae been issued and applied in the manner provided. In regard to the Treasury credits, it is learned that bills amounting to 30,Q90,009 dollars, which matured on the 29th, in New York, have been > paid, and the balance, amounting to 900,000,000 francs, of the credit given by the consolidation of French banns, has been paid off. In each case, tuo Treasury retains the right to reborrow until twelve months after the grant of credits in August and (September.

The last loan of 2,500,000,000 francs from the French public has not been paid.

THE SURPLUS' EXPLAINED.

EXTnA INCOME TAX

LONDON, April 1

“The Times,” in a leading article, says: The Budget results are highly gratifying, proving that the country lias been able to support a gigantic burden, but it must be remembered that the surplus lias been achieved by the collection of one and a-quarter years’ income tax in a single year,

which cannot lie repeated. The tax receipts are bound to fall this year, because the taxes will be levied upon lower profits. The 1931 32 tariff revenue, which tentatively lias been osliiivntcd at thirty millions, is nob likely to he realised.

EXTENT OK SURPLUS. LESS THAN FORECAST. LONDON, April 1. Referring to the British Budget, the Australian Pre-s says: The real Led surplus of £364.409 for the financial year is so emisidernhly below the forecasts that, it may appear to be disappointing, hut it must be read m conjunction with the fact that the

Exchange Reserve has been drawn on to the extent of only £12,750,01)0, whereas in the Budget estimates it was nroposed to draw twenty-three millions. Had the original plan boon followed the surplus would have amounted to C 10,500,000. The smaller draft on wha(, is really a capital fund leaves a balance for later use. ‘‘DAILY MAIL’S” COMMENT. LONDON, April I. The ‘‘Daily Mail” says: “I he Budget. achievement is v.'o’derful. No other country in the world can shew such an exi "limit remit. The income tax ami mill tax yield is magnificent. After one of the darkest periods of cur finanei.il history, daylight is at last visible.