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1.-FINANCES,

The revenue for the year amounted to $21,131,582 being $235,161 less than the estimate and $2,112,783 less than the revenue for the previous year.

Compared with the returns for 1925 there were decreases under all the heads except Kowloon-Cauton Railway, Licences and Internal Revenue and Miscellaneous Receipts.

The expenditure amounted to a total of $23,524,716 inclusive of a sum of $4,720,000 spent on Public Works Extraordinary.

The detailed figures for 1926 are set out in the following statements:-

Military Expenditure exceeded the estimate by $173,824.

EXPENDITURE.

$

C.

Governor

115,162.79

Cadet Service

292,521.50

Junior Clerical Service

669,125.82

Colonial Secretary's Department and Legis-

lature -

55,136.12

Secretariat for Chinese Affairs

8,147.42

Audit Department

45,609.05

25,045.11

Harbour Master's Department

619,442.78

667,665.32

Treasury

Imports & Exports Department

Royal Observatory Miscellaneous Services

Judicial and Legal Departments -

Police Force

45, 158.87 990,467.63

267,171.45

1,745,084.97

HEADS OF REVENUE.

C.

Fire Brigade

206,232.50

Light Dues

Light Dues, Special Assessment -

110,543.80

127,655.26

Prison Department

472,337.42

Medical Department

723,228.88

Sanitary Department

569,392.24

Botanical and Forestry Department

87,541,09

Licences and Internal Revenue not otherwise

Education Department

910,063.09

specified

14,020,850.58

Military Expenditure

4,247,038.00

Fees of Court or Office, Payments for specific

Public Works Department

1,248,864.89

Do.

Recurrent

purposes, and Reimbursements in Aid -

1,822,816.80

1,188,587.15

Post Office

766,539.87

Kowloon-Canton Railway

538,044.73

Rent of Government Property, Land, and

Houses

1,264,799.24

Interest

237,443.67

Miscellaneous Receipts

2,290,775.73

Do.

Port Development Department

Port Works Extraordinary

Post Office -

Kowloon-Canton Railway

Charge on Account of Public Debt Pensions

Charitable Services

TOTAL

Extraordinary

4,720,000,19

59,299.30

526,670.93

120,848.45

766,402.88

803,272.29

578,765,67

115,842.01

- $28,524,715.91

TOTAL, (Ordinary)-

Land Sales, (Premia on New Leases)

$20,845,240.03

280,341.61

TOTAL

$21,131,581.64

The total expenditure brought to account amounted to $23,524,716 being $265,899 less than the estinate, and $4,724,102 less than the expenditure in 1925. Miscellaneous Services exceeded the estimate by $230,130 chiefly on account of the upkeep of emergency organisations brought into existence by the political situation.

The balance to the debit on the year's working was $2,303, 134 and the assets and liabilities account showed on the 31st December a credit balance of $3,486,290.54.

The following is a statement of the revenue and expenditure of the Colony for the five years 1922-1926 :-

Revenue.

Expenditure.

S

1922

22,291,065

18,563,003

1923

24,783,763

21,571,905

1924

24,209,640

26,726,428

1925

23,244,365

28,266,870

1920

21,131,582 23,524,716

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