Chapter 4: Public Finance and Taxation.

Revenue and Expenditure figures since 1st April, 1953, are

as follows:

1953-4

1954-5

1955-6

1956-7 (Estimated)

Revenue

Expenditure Surplus $

$

$

396,881,967 355,407,771 41,474,196 434,452,321 373,343,609 61,108,712

454,720,189 402,463,642 52,256,547

Deficit

449,937,080 493,263,090 43,326,010

On 31st March, 1956, the General Revenue Balance and the Revenue Equalization Fund stood at $311,436,145 and $137,614,761 respectively. A statement showing the assets and liabilities of the Colony at that date is at Appendix III.

Revenue for 1955-6 exceeded the estimate by $41,039, 189. The largest excess was that under Revenue Head 1, Duties, with an excess of $11,180,789, of which import duty on hydrocarbon oils ($4,551,407) tobacco ($3,356,960) and duty on locally manufactured liquor ($1,813,288) provided the major share. Another large excess was on stamp duties (a sub-head under Revenue Head 3, Internal Revenue) with a surplus of $6,895,084 over the estimate, due mainly to increased activity in the property market. The next largest increase was under Revenue Head 2, Rates, with excesses for Hong Kong and Kowloon of $3,393,079 and $2,526,728 respectively. Large excesses were registered under Revenue Head 9, Revenue from Lands, Rents, etc. There was a surplus of $4,686,398 under the sub-head Interest, derived from increased sterling investments and from the higher interest rates on surplus funds deposited locally and in the United Kingdom. Under Revenue Head 10, Miscellaneous Receipts, there were increases of $3,224,426 from Royalty

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