We have written about the Budget and its problems in
our first two leading articles, but we must describe here some of its main points. The balance-sheet for the past financial year showed an actual revenue of £812,062,000-111,002,000 over the estimate. The expen- diture, however, owing to the coal subsidy (which cost £19,000,000), amounted to £826,100,000. This was £7,700,000 over the estimate without including the coal subsidy. If there had been no coal subsidy there would still have been a surplus of nearly five millions. As it was, the deficit to be made up out of current resources was £14,038,000. Turning to the coming year Mr. Churchill estimated the revenue, on the basis of existing taxation, at £804,700,000 and the expenditure at £812,641,000. The deficit would be £7,941,000. He then estimated that after allowing for the proceeds of the new taxation which he proposed, and for the fresh expenditure which would be possible and justifiable as the result of the new taxation, his revenue would be £824,750,000 and his expenditure £820,641,000. In other words he budgeted for a surplus of £4,109,000.
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