Turning to the figures of his Budget, Mr. Churchill estimated
that the revenue would be £801,060,000 and the expenditure £799,500,000. The surplus would thus be £1,660,000. The expenditure figure was up by £9,000,000. This was " frankly disappointing." The explanation was that estimates had not been in early enough to be passed through the Treasury sieve. In future they would be in by November and a Standing Committee of the Cabinet would regularly overhaul the blocks of recurrent expenditure. By this means he hoped to obtain an annual progressive reduction of £10,000,000, in addition to £5,000,000 a year reduction in Debt charges. On the basis of existing taxation he expected an increase in revenue of £26,600,000 without gambling on any trade expansion and without allow- ing for reparations or the payment of Allied debts, but his programme of constructive reform and remission of taxation would absorb more than that. Therefore he must " fortify the revenue."
