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FINANCIAL STRUCTURE
during 1975-6 economic growth was resumed and the accounts again returned to surplus. Revenue of $6,519 million (as compared with the original estimate of $6,184 million) exceeded expenditure of $6,032 million (original estimate $6,615 million) for the year by $487 million. Revenue and expenditure for the years 1974-5 and 1975-6 together with the estimates for 1976-7 are detailed and compared in Appendices 7 and 8. Sources of revenue, and expenditure in various fields, are shown proportionately by charts in Appendices 7a and 8a.
For 1976-7 the estimated revenue is $6,857 million and expenditure $7,212 million, so that a deficit of $355 million is estimated for the year.
Assets, Liabilities and Funds
At March 31, 1976, net available public financial assets were $2,810 million, while the public debt was equivalent to some $403 million-about $92 per head of popula- tion. Indebtedness increased by $267.2 million during 1975-6 principally as a result of the issue of $250 million-worth of Government Bonds. Interest at the rate of 61 per cent per annum is payable on the bonds half-yearly in May and November, and they are repayable at par in November 1980.
Also contributing to the increased public debt was a loan of US$3.2 million obtained from Lloyds Bank International, on which interest is payable half-yearly at varying rates. The loan is repayable by five equal annual tranches commencing in August 1976. Additional borrowings totalling $3.9 million were also made during the year under the Asian Development Bank Loan towards the construction of seawater desalting works near Castle Peak in the New Territories. The interest rate for this loan is 71 per cent per annum, and the capital sum is repayable over 10 years from January 1976. The Rehabilitation Loan, of which $50 million was raised in 1947-8 to cover part of the cost of post-war reconstruction, is repayable not later than 1978. Its sinking fund stood at $35.3 million on March 31, 1976.
In addition to these assets and liabilities, there is a Development Loan Fund and a Lotteries Fund which exist for special purposes. The Development Loan Fund- which is financed mainly by transfers from general revenue, interest payments and capital repayments-totalled $1,013.8 million at March 31, 1976. It is used to finance social and economic developments of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year 6,448 students at Hong Kong's two universities and at the Hong Kong Baptist College received interest-free loans totalling $18.2 million. At March 31, 1976, liquid assets amounted to $214.4 million and outstanding commitments to $256.5 million.
The Lotteries Fund mainly provides grants and loans to finance the development of social welfare services. The fund was started in 1965 with a transfer from general revenue of $7.4 million, and an additional $68.2 million has since been credited through the net proceeds of the Government Lotteries, the Royal Hong Kong Jockey Club Lotteries and the auction of special vehicle registration numbers. At March 31, 1976, grants and loans amounting to $62.3 million had been approved. A further sum of $1.6 million-being unclaimed prize money-was held on deposit.