44
FINANCIAL STRUCTURE
services and development. A budget forecast of a deficit of $13 million in 1968-9 became an actual surplus of $208 million. The pace of economic growth continued to accelerate in 1969-70 and 1970-1 with estimated surpluses of $53 million and $191 million becoming actual surpluses of $448 million and $619 million, respectively.
For 1971-2 the budget estimate of revenue is $3,118 million which is $47 million more than actual revenue in 1970-1; two taxes were repealed and water charges, last increased in 1965, were raised to meet the increasing cost of developing Hong Kong's water supply. The estimate of expenditure is $2,862 million which is $410 million more than the actual expenditure in 1970-1. The estimated surplus of $256 million may be exceeded; but, on the other hand, the cost of the Civil Service is expected to rise sharply. In addition, recorded expenditure on capital works for the first four months of 1971-2 was 45 per cent higher than in the same period in 1970-1, as a result partly of the increased cost of labour and of materials and partly of the additional engineering and waterworks projects in hand.
At March 31, 1971, net available public financial assets were $2,204 million. In accordance with normal government practice, the public debt of the Colony (see Appendix 15) is not included in the statement of assets and liabilities in Appendix 13. The debt as of March 31, 1971, was $60.4 million or the equivalent of ap- proximately $15 per head of population. Indebtedness decreased by $3 million during the year, due mainly to the repayment of £200,000 of the United Kingdom's interest-free loan of £3 million for the development of Hong Kong Airport. This loan is repayable by 15 annual instalments; the first repayment was made on October 1, 1961. The Rehabilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruction, is repayable in 1973-8; its sinking fund stood at $32.9 million on March 31, 1971.
In addition to the Assets and Liabilities referred to, there exist for special purposes the Development Loan Fund and a Lotteries Fund (see Appendix 18). The Development Loan Fund now total- ling $682 million is used to finance social and economic develop- ment projects of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year 2,342 university students received interest free loans totalling $3.2 million. At March 31, 1971, liquid assets amounted to $36.5 million and outstanding commitments $111.7 million. The Lotteries Fund, established in 1965, is for the support and development of social