BRITISH FINANCE.

Taranaki Daily News, 27 May 1921, Page 5

BRITISH FINANCE.

CURTAILING EXPENDITURE. DROP IN REVENUE EXPECTED. FURTHER TAXATION OPPOSED, By Telegraph.—Press Assn.—Copyright. Received May 26. 8.10 pm. London, May 25. The Government has ordered a reduction of expenditure on the supply services during the next financial vear from £603,000.000 to £490,000,000.’ The Treasury has sent a circular to all Government departments demanding drastic reductions in the estimates and supply services, pointing out that the decreased revenue for 1922-23 necessitated a reduction of these estimates of 20 per cent., amounting to £113,000,000 below 1921-22. The reduction may require the cessation of services necessitated by statute, the abolition 1 of which requires Parliamentary authority. The Treasury circular points out that the ordinary revenue next year is unlikely to exceed £950,000,000, and at least £465,000,000 must be provided to meet debt charges, leaving £485,000,000 for supply services. All departments have been instructed to make a searching examination of their expenditure. The only alternatives to a reduction of expenditure are fresh borrowing or increased taxation, which would seriously hamper the recovery of industry and commerce, and which are strongly opposed by the House of Commons and the country. A reduction of taxation and indebtedness as rapidly as possible is required to maintain and stimulate industry and commerce, and to secure full and regular employment.—Reuter Service.