§ I will turn to a statement of the revised Estimates for this year and next year, and I start from the existing basis, that is, upon the existing taxes and expenditure apart from what I have just said with regard to the transfer of borrowing to current expenditure. Since the Budget Statement in April, the great depression has grown deeper, and I am faced with a very serious short fall of revenue which cannot be put at less in the current year than £25,000,000 on Inland Revenue and £4,000,000 on Customs and Excise. The suspension of War Debt payments under the Hoover Plan will further reduce the revenue this year by over £30,000,000, of which £25,000,000 is accounted for by reparations and receipts on account of allied debts, and £5,000,000 is accounted for by the extension that we made of the Hoover plan to the Dominions and relief and certain reconstruction loans to States in Europe.
§ The Hoover plan, on the other hand, reduced the debt interest to be paid to the United States by £13,500,000 this year. The expenditure of the year since the Budget was introduced will be increased by Supplementary Estimates amounting to a little under £1,000,000—about £813,000. In addition, there is the decision for the transfer of borrowing for the Unemployment Fund and the Road Fund to Votes, the current year's charges amounting to £25,000,000 for unemployment borrow- 300 ing, and £9,000,000 borrowing for the Road Fund. The Hoover plan also reduces the provision required for debt redemption, that is, on the American Debt, by £5,750,000, and it therefore reduces the Sinking Fund as fixed in the Budget of this year by that amount, that is, it reduces it to just over £46,000,000.
§ I am going to summarise these figures in order to make them as plain as I can to the House. We shall have a loss of revenue from taxes of £29,000,000 and a loss of revenue on reparations and debts of £30,300,000; that is £59,000,000 loss of revenue; Supplementary Estimates amount to £813,000; the cessation of borrowing for unemployment and the Road Fund involves a charge of £34,000,000, that is a total of £94,000,000. We are saving £13,550,000 as interest on the American debt, and £5,750,000 of Sinking Fund on that debt. These two figures amount to £19,300,000. Deducting this £19,300,000 from the £94,000,000, we get an estimated deficit on this year's Budget of £74,700,000.