PUBLIC FINANCE AND TAXATION

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of $4,932,000 over the estimate. Details of the main heads of Revenue are given in Appendix IV.

Expenditure for 1956-7 fell short of the estimate by $23,718,792. The total saving effected under various heads was $41,368,253, this being offset by excesses of $17,649,461 under others. Details of the main heads of Expenditure are given in Appendix V.

The largest excess over the estimate, amounting to $8,198,198, came under Head 19, Miscellaneous Services. This was mainly accounted for by a contribution of $10,000,000 to the Local Loans Fund, -established during the 1956-7 financial year, and the expenditure of $1,141,880 occasioned by the Kowloon Disturbances in October 1956, offset by savings under other sub-heads. An excess of $6,052,144 was incurred under Head 39, Stores Department, due to heavy expenditure on purchases of construction materials, medical stores and general stores.

Development Fund expenditure incurred during the 1956-7 financial year was $29,853,071, and on 31st March, 1957, totalled $48,628,492 from the inception of the Fund.

A Local Loans Fund was established in the 1956-7 financial year, and interest-free loans amounting to $5,008,333 were made to nine educational and medical organizations during

the year.

The Public Debt of the Colony on 31st March, 1957, was as follows:

31% Dollar Loan (raised in 1934)

3% Dollar Loan (raised in 1940)

33% Rehabilitation Loan (raised in 1947-8)

$ 1,480,000

4,243,000

46,666,000

$52,389,000

The two Dollar Loans are each redeemable by twenty-five annual drawings, and the Rehabilitation Loan is covered by a Sinking Fund which on 31st March, 1957, stood at $14,172,778, this being the market value of the sterling investments held on behalf of the Fund.

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