56
PUBLIC FINANCES
was rather lower than originally forecast, and capital revenue, mainly from land sales, has shown a marked increase.
A comparative statement of recurrent and capital income and expenditure for the years 1958-9 (actual) to 1962-3 (estimated) is included in Appendix II. It will be seen from the 1962-3 figures that it is estimated that revenue will no longer be able to finance all capital expenditure and that the estimated deficit of nearly $164 million arises solely from Government's very heavy pro- gramme for non-recurrent public works. This capital expenditure is mainly for more schools, medical facilities and housing as well as for water supplies, roads and land development schemes. The estimated deficit may prove to be pessimistic but, if not, it is possible that money will have to be raised by borrowing if develop- ment in these fields is not to be curbed in future.
The Colony's statement of assets and liabilities at 31st March 1962, and analyses of the Colony's revenue and expenditure in the financial years 1960-1 and 1961-2, together with the estimates for 1962-3, are at Appendix II. In 1961-2 the revenue of $1,030 million was $117 million more than the original estimate. All recurrent heads shared in this excess but the largest amounts were in internal revenue ($48 million, including $25 million on earnings and profits tax), Post Office ($19 million), revenue from lands, interests, rents, etc ($12 million, including $8 million from interest). Expenditure for the year was $953 million against the estimate of $1,074 million, a saving of $121 million of which $72 million on public works non-recurrent arose from certain projects not being completed as early as expected!
The statement of assets and liabilities shows that at 31st March 1962 net available public assets were $631 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 $276 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 1962 outstanding com- mitments from funds allocated exceeded liquid assets of $23 million by $134 million. According to normal Government practice the statement of assets and liabilities excludes the public debt of the Colony from the liabilities. The debt at 31st March 1962 was