The Government's preoccupation with national defence problems was made obvious in the drafting of the Budget for the 1938-39 fiscal year, which calls for an expenditure of £944,398,000 upon the armaments programme alone. This shows a1 Increase of £81,500,000 upon estimates for the past year.
Of the total sum, the Army received £77,373,000, while the Navy got ££3,810,000 and the Air Force, £72,976,000. More than £19,000,000 were allotted to cover payments of pensions in the three services. The total docs not Include—£90,000,000 which the Government intended to feollect by means of loans.
To cover the increased expenditure, Sir John Simon, Chancellor of the Exchequer, increased income tax rates from five shillings and six pence, the highest rate since the World War. He also raised the tax upon tea by [two pence per pound, and the tax upon motor fuel by a penny per Futhermore, Sir John announced the constitution of reserve stocks of raw materials and the institution of measures to improve both the active und passive defence systems.
Text read from the printed page and cleaned; old type leaves the occasional error.