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FINANCIAL STRUCTURE
$643 million, the main factor contributing to the excess becing an initial contribution of $500 million to a fund established to finance the proposed underground railway system. Revenue and expenditure for the year 1971–2 and 1972–3 together with the estimates for 1973-4 are detailed and compared in Appendices 6 and 7.
For 1973-4 the estimate of revenue is $4,922 million and expenditure $4,409 million. The indications are that actual revenue may slightly exceed the estimate, while increasing costs are likely to raise expenditure appreciably above $4,409 million. Therefore, the budgeted surplus of $513 million for 1973-4 may be optimistic.
At March 31, 1973 net available public financial assets were $3,089 million, while the public debt as of March 31, 1973 was $53.4 million, less than $14 per head of population. Debts decreased by $4.1 million during the year, due mainly to the repay- ment of £200,000 of the United Kingdom's interest-free loan of £3 million for the development of Hong Kong International Airport. This loan is repayable by 15 annual instalments; the first repayment was made on October 1, 1961. The Rehabili- tation Loan of which $50 million 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 $32.4 million on March 31, 1973.
In addition to the assets and liabilities referred to, there exist for special purposes the Development Loan Fund and a Lotteries Fund. The Development Loan Fund, now totalling $727 million, is used to finance social and economic development proj- ects of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year 3,250 university students received interest-free loans totalling $9.3 million. At March 31, 1973, liquid assets amounted to $65 million and outstanding commitments $108.6 million.
The Lotteries Fund, established in 1965, is mainly for financing by grants and loans the expenditure involved in the development of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $41.6 million was credited during the period June 30, 1965 to March 31, 1973 by which date grants and loans amounting to $41.6 million had been approved. A further sum of $1.8 million, being unclaimed prize money as at March 31, 1973, is held in deposit.
The audit of all public accounts and certain special funds is carried out by the Director of Audit, whose annual report on the accounts of the Hong Kong Govern- ment is presented to the Legislature and transmitted to the Secretary of State.
Duties
There is no general tariff on goods in Hong Kong, but three groups of commodi- ties-alcoholic liquors, tobacco and hydrocarbon oils are subject to excise duties, whether they are locally manufactured or imported. In certain cases, preferential rates are charged on local manufactures and imports from Commonwealth countries.
Duties on table waters and furnace oil used for the production of electricity or gas were abolished with effect from April 1, 1973.