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PUBLIC FINANCES
pessimistic but, even so, the possibility exists that money will have to be raised in succeeding years by loans and additional taxation if development in these fields is not to be curbed.
Revenue and expenditure for the last two years, with the estimates for this financial year are detailed and compared in Appendices IV and V. In 1963-4 the revenue of $1,394 million was $197 million more than the original estimate. The heads showing the largest excesses were Internal Revenue with $72 million (including $45 million on Earnings and Profits Tax and $11 million on Stamp Duties) and land sales with $48 million, but all the recurrent heads, with the exception of Water Revenue, which was down by $10 million on account of the severe rationing throughout the year, also recorded excesses. Expenditure for the year was $1,295 million against the estimate of $1,360 million, showing a saving of $65 million in spite of unforeseen additional expenditure of $50 million on the water emergency. The largest saving was $13 million under public works non-recurrent, the balance of $52 million being distributed in smaller amounts among the other heads, with all but six recording a saving.
At 31st March 1964 net available public assets were $900 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 $340 million, used to finance social and economic development projects (see Appendix XI) of a self-liquidating nature. The greater part has been used for low-cost housing schemes. At 31st March 1964 outstanding commitments from funds allocated exceeded liquid assets of $15 million by $216 million. However in January 1964 an amend- ment to the Exchange Fund Ordinance (Chapter 66) was enacted to enable transfers to be made from the surplus balances in the Exchange Fund and in May a transfer of $150 million was made to the Development Loan Fund. This has made provision for the greater part of the outstanding commitments. 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 1964 was equivalent to approximately $23 per head of population. Indebtedness decreased by $3.8 million during the year owing mainly to the repayment of $3.2 million of the United Kingdom's interest-free loan of £3 million for the development