Budget Prospects With the end of the financial year approaching,
the nation's accounts have already shown a surplus of revenue over ex- penditure of L286,989, which, taking account of disburse- ments for sinking fund, means a true realised surplus of £10,156,738. Provided that in the remaining weeks revenue and expenditure reproduce those of last year, there should be (omitting borrowings for defence) a Budget surplus of £12.8 millions. In any normal year the taxpayer would review the nation's accounts with satisfaction and promise himself some relief next year, but, owing to rising expenditure on arms, he is more inclined to fear increased demands next year than to rejoice over the present surplus ; there are confi- dent predictions that income tax will rise to 6s. The Econo- mist calculates that expenditure to be met out of revenue next year will be £940 millions, which has already been exceeded. Allowing for the natural buoyancy of the revenue and for " automatic " increases, the Chancellor's resources may be raised to £910 millions, leaving a sum of £30 millions which, in whole or in part, must be obtained from increased taxation. It can be found, without severe sacrifices ; but, in view of the purpose which makes it necessary, it will not be found gladly.
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