BUDGET DEFICIT

Sun (Auckland), Volume III, Issue 907, 26 February 1930, Page 9

BUDGET DEFICIT

MR. SNOWDEN’S CANDID PREDICTION HEAVY REVENUE DECREASE British Official Wireless RUGBY, Monday. The Chancellor of the Exchequer. Mr. Philip Snowden, in a speech at Huddersfield, said it w-as possible that he might be faced with a deficit at the close of the financial year on March 31. In the lobbies of the Houses of Parliament a deficit of as much as £10,000,000 is forecast in some quarters, but in view of the fact that the revenue is generally heaviest in the closing weeks of the year little confidence can be placed on such estimates. The latest official figures of the revenue show a current deficit of £97,000,000, compared with a deficit of £58,000,000 in the middle of February last year. By the time the accounts were closed last year revenue had overtaken expenditure, and there was a surplus of £18,000,000. The revenue this year, however, is £22,000,000 lower, and expenditure shows an increase of £17,000,000. In view of the situation it is suggested that Mr. Snowden will not sacrifice the revenue of £3,500,000 which the McKenna duties on motor-cars and other goods produced. These are annual duties, recoverable from year to year under the Finance Act. The other safeguarding duties, however, have fixed statutory time limits. The first that is due is the lace duty, on July 1. Mr. Snowden ba3 already announced that none of the safeguarding duties will be allowed to remain in force beyond the statutory dates fixed for their expiration. In introducing his Budget last year, Mr. Winston Churchill estimated that a surplus of £4,096,000 would be realised. He had hoped to apply £50,400,000 to the sinking fund, but at December 31, only £36,363,292 had been applied, as against £40,148,592 in the same period of 1928. At that date the deficit on ordinary revenue and expenditure was £133,432,294. The decline t’. n in excise duties was £5,335,000, although Mr. Churchill had estimated a decline for the 12 months of £3,670,000.