The disposal of the realized surplus was the first important
point of the Budget. Next is the Chancellor of the Ex- chequer's decision not to reduce taxation, but to leave it for the coming year at the same rate as in the year that is past. As we have pointed out elsewhere, we think this is a wise arrangement, for it would be very rash to assume that the boom in trade will go on, or, at any rate, will be continued at its present height. Not only is the reaction due, but in all probability the coal strike will hasten its coming. In spite, however, of these considerations the Chancellor of the Exchequer might have reduced taxation bad he been able to look forward to maintaining his expendi- ture at the old level. Unfortunately, however, the estimate of expenditure is up by £5,640,000, making a total of £186,885,000. This prospective rise in expenditure is partly due to our normal naval needs and partly to the fact that £2,600,000 will be required for health and unemployment insurance. There will also be £200,000 for small-holders in Scotland and £364,000 extra for education. The Post Office Will require more owing to their taking over the telephone service. There will, in addition, be an increase of £170,000 for the Army, due to the expenditure required for aviation.
