BRITISH FINANCES

Wairarapa Times-Age, 4 January 1939, Page 5

BRITISH FINANCES

DEFICIT NOT DISQUIETING EXPENDITURE INCREASES REARMAMENT THE MAIN FACTOR. (British Official Wireless., RUGBY, January 2. As the bulk of income tax and surtax is collected in the fourth quarter of the financial year, a large deficit at the turn of the calendar year is part of the normal routine of the British system of public finance and that disclosed in the accounts of national revenue expenditure for the April-De-cember period is not unexpected. The newspapers do not regard it as disquieting as it arises mainly from the method of showing armaments expenditure in the accounts. Total ordinary revenue amounts to £490,435,566, compared with £478,712,258 at the corresponding date last year. Increases in yield under the various heads of revenue include £9,689,000 from income tax and £13,211,000 from the national defence contributions —from which only £59,000 had been received at this time last year but this increase is offset by a decrease of £15,285,541 in revenue from other sources, principally accounted for by a fall of £11,420,000 in estate duties payable on death.

Total ordinary expenditure is £739,882,332, compared with £651,215,391 at the corresponding date last year. Of the increase, defence expenditure accounts for £651,000,000 and civil and revenue votes for £22,122,187.

The total floating debt now outstanding is £1,036,675,000, which is a net increase of £194,920,000 since the beginning of the financial year and £51,780,000 more than at the end of December last year.