Page
HONGKONG'S FINANCIAL POSITION.
THE HONGKONG DAILY PRESS, FRIDAY, OCTOBER 9TH, 1925
H.E THE GOVERNOR. DISCUSSES THE ESTIMATES FOR 1926.
MANY ECONOMIES EFFBO,
NO NEED FOR ADDITIONAL TAXATION.
The Badget for 1926 was presented to the Legislative Council yester- day afternoon when. H. E... the Governor reviewed in detail the estimates of revenue and expenditure.
a. glance --
EXPENDITURE
Dericit
The following table shows the position at
11.
1625.
1926. Revised. Estimate Estimate
420,420
21,209,638
30,009,19. 29.970,855
2,619,789
90,790,815 21,367,743 2,42,872
The Colopy opened the year 1995 with a credit balance of just over thirteen million dollars. A good many important works of development wern decided upon, and when the Badges was introduced last Autumn an estimated expenditure of 830,483,011 was approved against an estimat- ed revenue of $21,818,700, leaving a deficit on the twelve months of $8,050,311, which would bring down, the credit balance to approximately pro- four and a half millions. During the first five months of the year gress was satisfactory and it appeared extremely probable that the defcit would not be as large as anticipated. Then came the strike and boyeptt." Revenue diminished and expenditure, under many heads, was unavoidably inerated. As a consequence economics were effected wherever possible and publié works that were not argently necessary were postponed. Following this change of policy the estimates were revised and it is now believed that the revenue for the year will be, as shown above, $9,270,955 against an Axpenditure of 830,032, 127, leaving a deficit of $7,732,972. Thos on present extentations, there will be a decren of just over four lacs in expenditure and an increase of $167,000 in revenue compared with the original estimates. The economies elected and the postponement of pub works have more than offset any extra expenditure due to the atrike and the exceptional expenditure rendered necessary by the ab norand rains, and the land slides. The actual increase in revenue des pite the falling off of receipts in many departments is due to the death datie paid on several large estates, On the figures now given, the Cology's credit balance at the end of the year will be well over five
are Budgetting for a deficit of two and a half " m. Next year we millions on revenue and expenditure which will reduce the balance by a ball. The anticipation of two and a half millions in hand at the end of 1926 is not a bad peaspect. Certainly there is no urgent need to impose additional burdens on the taxpayer for the time being.
Those present at yesterday's meeting
Wero
His Excellency the Governor (Sir, E. E.
STUBA..K.C.M.G.).
flis Excellency the General Officer Com- muading the Troops (Major General C. C. LUARD, C.B., Q.M.G.). The Colonial Secretary (Hon. Sir CLAUD
SEVERN, K. B. E.. C.M. G.). The Attorney-General (Hon. Sir RESEY
POLLOCK, K.C.).
The Colonial Treasurer (Hon. Mr. C. McI.
Messze, O.B.E.).
Hon. Mr. H. T. Cuzar (Director of
Public Works)."
Hon. Mr. D. W. TRATMAN (Secretary" for
Chinese Affairs).
Hon. Dr. J. B. ADDISON, M.B.E. (Pria-
cipal Civil Medical Officer).
Hon. Mr. P. E. HOLYOAK.
:1
Hon. Mr. A. O. Lako.
Hon. Mr. CноW SHOυ Sox.
Hon. Mr. H. W. BIRD.
Hon. Mr. B. H. KOTEWALL..
Hoa Mr. C. G. ALABASTER
amounted to $24,209,510, being 2,839,706 more than the original estimate and some three locs more than the revised estimate. There were increases under all heads, ompared with the preceding year, with the exception of the Railway and Land Sales. The total expenditure brought to account amounted to $91,796,428 which was $1,801,761 more than the original estimate and some six lacs more than the revised estimate. The reasons, for this increases were fully put before you' when the Supplementary Appropriation Ordinance, was submitted to Council. A farther deficit arises in the Exchange Fluctuation Account of about $340,0 with the result that we opened this year with a Credit balance of just over In niillion dollars.
די
12
GOOD START IN 1925. The year 1025 started well and the to the end of May was revenpo up $0,261,105, showing an increase over the proportionate part (3/12ths) of the esti mate for the year of nearly $200,000 and there was good ground to hope that the heavy deficit for which we had budgetted
Mr. A. G. M. FLSCE, C.M.G., GB.E. would be far less than we had estimated.
(Clerk of Councils).
MISITES.
Unfortunately at this stage. we were, by the machinations of enemies from out- xide, involved in troubles which were in
The minutes of the previous meeting themselves no concert of ours and the were, confirmed.
PAPERS.
The COLONIAL SECRETARY, by order of LE The Governor, laid upon the table papers Nos. 1 to 8.
FINANCIAL MEJUTER.
The COLONIAL SECRETARY, by command of HE. the Governor, laid upon the table Financial Minutes No. 75 and 77 to 72 and moved that they be referred to the Finance Committee.
The COLONIAL TREASURER seconded, and this was agreed to.
FINANCIAL COMMITTEE.
The COLONIAL SECRETARY,,by order of HE The Governor, laid upon, the table report of the Finance Committee No. 11. and moved that it be adopted.
The COLONIAL TEASUREE seconded, and shis was agreed to
THE BUDGET.
The COLONIAL SECRETARY: I beg to wove the first reading of a Bill intituled Au Ordinance to apply a sum not exceed ing $18,757,777 to the Public Service of the year 1990.
result has been that our financial outlook. has been very seriously affected.
From the latter part of June onwards. there has been a considerable falling off under most beads of revenue, though the position in this respect now shows signs of improvement. Owing, however, to the payment of death duties on several very large estates there has been an increase two million in stamp duties of over dollars which go far to counterbalance the, deficits in other sources of revenue and it is hoped that we shall finally exceed our original conservative estimate for the rear by some funr hundred thousand ปาว โars.
ECONOMIES.
We.pre making every possible effort to effect economies and is hoped that the expenditure for this year will be less then the Estimate in practically every department. it is, however, dificult to stop works in the middle and usually impossible to cancel contracts or counter- mand stows without heavy loss so that we cannot hope to close the year without a heavy deficit. It is too early yet to attempt to give even approximately accurate figures and I do bot feel able to commit myself to any forecast beyond The COLONIAL, TREASTFE seconded. EL JUK GOVERNÖR: Honourable Men saying that in any case our balances are sufficient to cover any possible deficit 'bers. Contrary to my anticipation it has this year and to leave us a margin which fallen to me to perform the duty of should enable us to carry on through the placing before you the Estimates of the year 1920 without imposing additional Revenue and Expenditure of the Colony burdens on the taxpayer unless the situa for the year 1926. Existing circumstances tion should become materially worse than have made the task of drawing up these it is at present. Estimates one of exceptional diffenity, and I must therefore crave your indul gence if they appear to be unsatisfactory
1.
NEXT YEAR'S REVENUE,
"In framing the Estimate of Revenue
and if my comments on them seem some- for 1926 I have considered that I am what vague and nebulous. An estimate justified in believing that
conditions
of revenue is necessarily at any time a during at least the greater part of the rather uncertain thing; it is at best, an year will be normal, and I have there expression of a belief or an aspiration. foro taken a figuzo ($21,367,743) which is In the present case I cannot claim that about half a million dollars less than it is anything more than a guess whether our original conservative estimate for A good guess or a bad one we cannot 1925. I cannot believe that the intelligent hope to tell until long after I have left people of Kwangtung-a rage which has the Colony. But before discussing this been famous for centuries for its com point farther I will deal with some of mercial ability and practical sense-can the figures of the last two years in order be content much longer to put up with the oppression of a regime imposed from to give a clearer view of the situation.
outside and supported by mercenaries from other provinces and I think it is not being oversanguine to hope for the establishment of good order by the end of this year or early in the next
FIGURES IN 1924.10. When the Estimates of Revenue and Expenditure for the year 1994 were re Tised on the basis of the actual figures for the first six months of that year it It is, however, obvious that such a was anticipated that we should have to return to sanity will not immediately ro meet from our accumulated balances establish trade on as good a basis as deficit of $9,217,000 and that our balance before. The harm which our encimies of assets on the 31st December, 1924, have done to us is not by any means would therefore be reduced to $13,750,000, negligible but it is, of course, nothing The total revenue for the year 1994 compared with the loss and destruction
of clerks amongst the various depart ments is shown in Appendix L, from which the staffing of the different depart- ments can easily be seen. At the same time I should mention that the order in which the departments: appear in the Estimates has been rearranged in a more logical sequence.
IMPORTS AND EXPORTS OFFICE.
which they have brought on the unfortu nata provinces of South Chins and it must be sears before the consequences coam to do falt. It is, therefore, neces- sary to proceed with the greatest caution, not to form too high hopes of the near future and to refrain from committing ourselves to costly projects until we are sure of our ground. If the situation clears up early and if trade shows a
After careful consideration and dis greater recuperative power than I have
cussion with the Chamber of Commerce thought it wise to assume, I hope that
it has been decided that the Statistical my successor will be able in the course
Department of the Imports and Exports of the year 1920 to place before you a supplementacF programme of Public Office should be abolished us, in present circumstances, the cost of it is out of ail Works which will make it possible to proceed with
number of the important proportion to its utility. This will mean projects which I have to my great regreta saving of approximately $44,000 made felt compelled to remove from the Esti- up as follows:-Salaries $25,000, Printing! and stationery $17,000, and Miscellaneous mates for the present. Meanwhile it is necessary to study the most careful Expenses $2,000 The cost of supervisor economy and to leave unattempted many has been dispensed with. The haldez will be transferred to the pust of Office things which would be of great value to
other Assistant and Accountant, which is fall- the community and which in circumstances I should have fels justified ing vacant, in the Harbour Master's De' partment. There is a reduction of $75,000 in regarding as necessary.
in the vote for the purchase of raw opium.
NEXT YEAR'S EXPENDITURE. The Expenditure for next year is esti mated to amount to $3,700,018. Each item has been carefully scrutinised and has been reduced as far as possible, and the total is less than last year's esti- mate by $8,879,996 and less than the ravized estimate by $8,941,012. The various increases and decreases in each department and the reasons for them are fully set out in the Sessional Paper which has been laid on the table.
CADET SERVICE.
The increases are due to stipulated annual increments, and salaries for two new cadets. As regards the latter the Secretary of State has been requested by telegraph to cancel the appointments if possible but as no reply has yet been received, it is necessary that provision
should be made.
JUNIOR CLERICAL SERVICE. This is a new heading. It has been thought advisable for the sake of economy in time and labour, as well as to facilitato promotions and transfers of darks be- tween departments to group the clerical staff under one bead as is already dona with the Cadet Service. The distribution
1-
HARBOUR MASTER'S DEPARTMENT.
Provision is made for one new post in the Harbour Master's Department, that of Assistant Inspector of junks and cargo It is anticipated boat at Aberdeen. that the creation of this new post will more than pay for itself by the increase in revenue from Aberdeen which will re- sult. The Revenue Department launch No. 1 has been transferred to the Harbour Master's Department, and pro- vision of the rescue tag must be made, for a full year, instead of for the half year only as in the case of last year's Estimates.
In recurrent charges there appear to be large increases in the votes for fuel- fing, repair, and stores for launches. The increase is, however, only in appearance and is due to a re-arrangement made in the interests of economy and efficiency. The Harbour Master's Department has taken over the supervision of the Police. Post Office, Revenue and Sanitary De- partments launches in these respects and the votes of those departments for those items have been deleted.
41
(Continued us page bi)
COLONY'S WORKING ACCOUNTS FOR 1924, 1925, 1926.
REVENUE.
THE FOLLOWING TABLE SHOWS THE ACTUAL REVENUK OF 1921, THE REVISED ESTIMATE OF REVENGE FOR 1925 AND THE ESTIMATED AVENUE FOR 1996
Revenue Revised Estimate Estimate A
1923.
1026. +
Light Dues merci.
Fees of Court, etc
Post Office
Kowloon and Canton Railway,
RENTS AND INTEREST.
102L *
TAXES.
316,395
Licences and Internal Reveaus..... EARNINGS OF GOVEISHENT.
18,701,771
263,000 16,388,459
313,000 13,989,923
1,630,824 525x 420,150
1,961 €37
721,910
1,604,607 770,000 501,400
1,979,179 G00,000
1,710,060,
790,000
787,500
1,381,810
391.703
TOTAL (axclusive of Land Sales) Land Sales
52,300.403 1,000,05
352,810
21.739.455 540,400
S74,450
20,667,743 300,000
GRAND TOTAL
24,200,858
22,279,855
91,367.743
Rent of Property. Land and Houses Interest
MISCELLANEDOS"
Miscellaneous Receipts...........
EXPENDITURE.
UBEN
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THE FOLLOWING TABLE SHOWS THE ACTUAL EXPENDITURE OF 1994, THE REVISED ESTIMATE OF EXPENDITURE FOR 1923 AND THE ESTIMATED EXPENDITCHE FOR 192
H.E. The Governor
S.C.A.
Special Expenditure
Audit Department... District Others ................
Post Office
Fire Brigade
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Expenditure Revised Estimate Estimate
1931.
1928.
1926.
Cadet Service .......
100,831 289,830
100, 10 305,8-13
Junior Clerical Service
(no classification)
94,104 340,8336 690,257
Colonial Serretariat and Legislature
Special Expenditure
69,551 440
731,223
55,773
130
600
27,512
30,266
9,398
Treasury
· 75,154
78,691
27,375
1,340
51,50%
50,790
43,530
44,208
42,420
23,070
255,023
303,000
234,423
Special Expenditure
1,049
Imports and Exports Office
*44238
571,183
881,020
Special Expenditure
29,318.
30,250
THE SAFE-CABINET.
..
Harbour Master's Department.
302,401
479,933
642,912
Special Expenditure
120,901
435,730
35,324
Royal Observatory...
41;011
42,362
33,643
Special Expenditure
11,627-
11,000,
3,000
150.382
160,010
179,087
Special Expenditure
49,167
934,603
1,400
Supreme Court.....
126,136
148,000
127,913
Attomey-General
27,4103
35,199
29,516
Crown Solicitor and Land Regist
67,401
71,949
38.945
Magistracies i
30,003
38.04
16,388
Special Expenditure
Police Force....
Special Expenditure
1,872.755 43,193
1,760,103
1,747,965
181,475
8,000
Prisons Department
376,158
438,429
Special Expenditure
Medical Department
8,204 498,342
1,267 565,023
513,477 9:50
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Special Expenditure
4,590
Sanitary Department.
508.529
173,50-1 '653,044
€70,810
Special Expenditure
72,415
Botanical and Forestry Department
88,396
93,030 92,302
∙17,500
"02,831
Special Expenditure.......
120
·· 10,000
3,500
Education Department
880,480
Special Expenditure.
17.
Public Works Department
39,152 1,154,189
Special Expenditure......
Public Works, Recurrent
Public Works, Extraordinary Port Development Department
985 1,703,968 8,112,785.
1942, 133 78,100 1,371,231 88,000 -1,601,000 0.870,000 83,783
928,605 1,200 1,420,207
1,199,700. 4,988,500
100,100
* Special Expenditure Port Works, Extraordinary Kowloon-Canton Railway..... Special Expenditure. Volunteer Defence Corps
Special Expenditure Pensions
1,200
650.00%
4,500 605,000
507,814
563,783
$70;763
802,113
179,850
·60,140
·4%,445)
59,970,
47,330
4,085
10,302
10,400
503,929
583,800
501,200
Charitable Services....
72,137
1,092,558
78,581 1,110,005
94,487
Miscellaneous Services
Military_Contribution Public Debt
680,311 89, 600
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