38
FINANCIAL STRUCTURE
of comparable magnitude. The 1968-9 budget anticipated a deficit of $13 million but a surplus of $208.1 million was achieved, although an adjustment of Civil Service salaries costing about $50 million was not taken into account when the budget was prepared. The investments in which part of the Colony's financial assets are held are revalued annually and the General Revenue Balance adjusted accordingly. During the year 1968-9, investments in British Govern- ment stocks declined in value by $46.5 million.
The budget for 1969-70 introduced no significant taxation changes but forecast a $53.4 million surplus. However, it seems likely that the actual surplus will be substantially greater.
Revenue and expenditure for the two previous years, together with the estimates for this financial year are detailed and compared in Appendices VI and VII. In 1968-9, revenue at $2,081 million was $129 million more than the original estimate. The head showing the largest excess was internal revenue up $76 million due mainly to higher earnings and profits tax and stamp duty receipts which reflected the prosperity of the Colony during last year. The largest relative increase, however, came from the Kai Tak Airport and air services head which exceeded the estimate by 22 per cent. There were shortfalls on two recurrent heads (Rates and Kowloon- Canton Railway) but all other recurrent heads produced excesses. Expenditure for the financial year 1968-9 was $1,873 million against the estimate of $1,965 million showing a shortfall of $92 million. Of the $359 million voted for building, civil engineering and water projects under public works non-recurrent heads of expenditure only $289 million was actually spent.
At March 31, 1969, net available public financial assets were $1,087 million, of which $138 million was earmarked in a Revenue Equalisation Fund as a reserve against possible future deficits on current account. According to normal government practice, the statement of assets and liabilities at Appendix VIII excludes the public debt of the Colony (see Appendix X) from the liabilities. The debt at March 31, 1968 was $66.4 million or the equivalent of approximately $17 per head of population. Indebtedness decreased by $3.6 million during the year, owing mainly to the repayment of £200,000 of the United Kingdom's interest-free loan of £3 million for the development of Kai Tak Airport. This loan is repayable by