PUBLIC FINANCES
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accounts completed so far suggest that it will be less, as revenue continues to remain buoyant and expenditure is lower than anticipated.
Appendix II provides a comparative statement of recurrent and capital income and expenditure for the years 1957-8 (actual) to 1961-2 (estimated). It will be seen that recurrent revenue is no longer able to finance all capital expenditure and that, in fact, the estimate deficit of $161 million arises solely from a very heavy programme of non-recurrent Public Works. This capital expendi- ture is on more schools, medical facilities and resettlement housing, as well as on water supplies, roads and land development schemes. It seems that development in these fields may have to be curbed unless money can be raised by borrowing and to this end negotia- tions were opened during the year with the World Bank.
Also shown in Appendix II are the Colony's Statement of Assets and Liabilities at 31st March 1961, and analyses of the Colony's Revenue and Expenditure in the financial years 1959-60 and 1960-1, together with the Estimates for 1961-2. In 1960-1 the revenue of $859 million was $147 million more than the original estimate. All recurrent heads shared in this excess, but the largest nounts were in Internal Revenue ($51 million, including $36 million on Earnings and Profits Tax), Fees of Court or Office and Post Office (each $13 million), Licences and Franchises ($10 million, including $6 million on Vehicles' and Drivers' Licences) and Duties ($12 million). Expenditure for the year was $845 million against the estimate of $938 million, a saving of $93 million of which $51 million on Public Works Non-Recurrent arose from delay in certain building projects.
The Statement of Assets and Liabilities shows that at 31st March 1961 net available public assets were $550 million, of which $138 million was earmarked in a Revenue Equalization Fund as a reserve against future deficits on current account. There was, in addition, a Development Loan Fund of $259 million, used to finance social and economic development projects (see Appendix II) of a self-liquidating nature. The greater part has been used for low cost housing schemes. At 31st March 1961 outstanding com- mitments from funds allocated exceeded liquid assets of $45 million by $173 million. According to normal Government practice the Statement of Assets and Liabilities excludes the Public Debt