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FINANCIAL STRUCTURE
welfare and university and polytechnic grants. But during 1975–6, 1976–7 and 1977–8, growth resumed and the accounts again returned to surplus. In 1977-8, revenue at $9,534 million (compared with the original estimate of $7,513 million) exceeded net expenditure (actual $8,298 million - original estimate $7,483 million) for the year by $1,236 million. Revenue and expenditure for the years 1976-7 and 1977-8, together with the estimates for 1978-9, 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 1978-9 the estimated revenue is $9,436 million and net expenditure $9,456 million, giving an estimated deficit of $20 million for the year.
Assets, Liabilities and Funds
At March 31, 1978, net available public financial assets were $4,948 million, while the public debt was equivalent to some $382 million – about $83 per head of population. Indebtedness decreased some $14 million during 1977-8, principally due to the repay- ment of the outstanding balance of government's 34 per cent Rehabilitation Loan issue amounting to $45 million on January 14, 1978, offset by drawings of $27 million from the Hongkong and Shanghai Banking Consortium loan facility. The issue of $250 million of government bonds made in 1975-6, on which interest at the rate of 6 per cent is payable half-yearly in May and November, is repayable at par in November, 1980.
In addition to these assets and liabilities, there is a Development Loan Fund, a Home Ownership Fund and a Lotteries Fund which exist for special purposes. The Development Loan Fund, financed mainly by transfers from general revenue, interest payments and capital repayments, totalled $902.2 million at March 31, 1978. 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. However during the year, an amount of $36.1 million was allocated as interest-free loans to 10,400 students at universities, the polytechnic, and a post-secondary college. At March 31, 1978, liquid assets totalled $214.5 million and outstanding commitments, $1,472.5 million.
The Home Ownership Fund was established in 1977 to finance the construction of flats for sale to the public under a scheme designed to promote home ownership among families with a specified income level. A total of $587.1 million was transferred to the fund from general revenue during the 1977-8 financial year to meet land premia, building construction costs and other charges. At March 31, 1978, the fund's liquid assets totalled $35.3 million.
The Lotteries Fund, established in 1965, is mainly for financing by grants and loans the development of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $106.4 million was credited between 1965 and 1978 through the net proceeds of government lotteries, the Royal Hong Kong Jockey Club lotteries and the auction of special vehicle registration numbers. At March 31, 1978, grants and loans amounting to $92.9 million had been approved.
Audit of Public Accounts
The audit of all government accounts and those of more than 80 statutory and non-statutory funds and public bodies, as well as a review of the accounts of the