MORE SATISFACTORY

Rotorua Morning Post, Volume 2, Issue 516, 27 April 1933, Page 5

MORE SATISFACTORY

(Press Assn.—

ESTIMATED DEFIpIT OF THIRTY-TWO MILLION NO MORE DEBT PAYMENTS The British Budget reveals a deficjt pf £32,000,000, which includes the debt payments to America, amounting to £29,000>OOQ. Chief among the proposals for the current yfiar are the omission of any provisjon f.or further debt payjnents, and a reduction of one penny a pint in the beer duty.

-By Telegraph — Copyright).

Rec. April 26. London, April 25. The main points of the Chancellor of the Exchequer, Mr. Neville Chamberlain's budget speech in the House of Comnions show that the result of the year 1932-33 is a deficit of £32,000,000 which would be met by borrowing. In face of the present strain this is as satisfying as surpluses would be in more prospefous times. Excluding debt payments there is a surplus of £11,250,000 of current revenue over current expenditare. The beer revenue was £6,000,000 belo^ 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. The Irish Free State duties yielded £2,500,000, the Ottawa duties £1,750,000. Mr. Chamberlain said he did not propose to provide either for debt payment to America nox* receipts from other countries. The year's saving in interest would be £22,000,000. The real saving to-day eompared with two years ago, .would be £113,000,000. Big drops in personal income were shown by the surtax returns, which yielded £11,000,000 below the estimate, and the income 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 1933-34 on 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 the 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. Budget Provlsions 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 lub-ricating oils; The making of no provision for the redemption of the war debts; Beer duty to be reduced by 24s a barrel; thus effecfcing a reduction in the retail price of a penny on l 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. The income tax rate will be unchanged. "The United States share our desire for international co-operation and though recent events involved anxiety we are hoping that President Roosevelt's further proposals will promote renewed confidence."