NEWS OF THE WEEK.
ON Thursday Sir Michael Hicks-Beach introduced the most momentous Budget of modern times. Its chief feature is the proposal to increase greatly, our indirect taxa- tion. There is to be a 4s. 2d. per cwt. duty on refined sugar, with corresponding duties of 2s. per cwt. and Is. 8d. per cwt. on molasses and glucose respectively, and there is to be a ls. per ton duty on exported coal. In addition there is to be another 2d. on the Income-tax. The yield of these new taxes is expected to be as follows :-
2d. more on the Income-tax, yielding ..C3,800,000 4s. 2d. per cwt. on refined sugar
2s. ler cwt. on molasses yielding 5,100,000 le. 8d. per cwt. on glucose ls. per ton export duty on coal, yielding ... 2,100,000
£11,000,000 • The need for this extra taxation arises from the following facts :- The estimated expenditure for the cur-
rent year is £187,502,000 While the Revenue on the existing basis of taxation would only be
This leaves a deficit of ••• •••
But by diminishing certain items and other savings the expenditure is
reduced to ... 182,962,000 The deficit is thus reduced to 53,207,000
Now the Chancellor proposes to deal with this estimated deficit thus. He will, as we have shown, first of all get £11,000,000 a year by new taxes— Leaving a deficit of ... £42,207,000 By the suspension of the Sink-
ing Fund he will get ... £2,500,000 132,155,000 55,347,000 This leaves the deficit at ...
But then there is the interest on fresh loans ... ... 1,250,000 This gives a final deficit of ...
To meet this and provide a margin the Chancellor proposes to take powers to raise a Consols loan of £60,000,000. 39,707,000 40.957,000
