Enclosure No. 5.
TREASURER'S MEMORANDUM ON REVENUE
165.
1928.
The Revenue for the year 1928 amounted to $24,968,399, including the sum of $1,963,359 representing expenditure on Loan Works during the years 1923-1926, which was recovered from the funds of the Public Works Loan (1927) and was credited to Revenue. Consequently an allowance in respect of this sum should be made when the total Revenue for 1928 is compared with the previous years' collections and with the Estimates for the years 1929 and 1930.
The Estimates for 1928 were exceeded by the sum of $4,865,009 and the Revenne for 1927 by $3,623,863.
The completed accounts for 1928 shewed that there was a surplus balance of $8,091,634 which exceeded the estimated surplus by $3,103,963.
With the exception of Light Dues which fell below the amount estimated by $11,158, all heads showed excesses.
The most striking feature which affords evidence of the improvement in local conditions is the fact that the Revenue collected in 1928 exceeded the Revenue collected in the boom year of 1923 by $184,636, and was, therefore, a record collection in the history of the Colony. The "Windfall" of $1,963,359 recovered from Public Works Loan (1927) and credited to 1928 Revenue, is more than counterbalanced by the
the sum of $3,488,797, representing premia on Land Sales received in 1923. Another feature of importance was the income derived from Land Sales which amounted to $1,635,236 sur- passing the estimate of $150,000 by $1,485.236. Licences and Internal Revenue register- ed an increase of approximately $517,000 largely due to Assessed Taxes, Liquor Duties and Revenue from Opium Monopoly. Other noteworthy increases were Fees of Court, &c. $79,665; Post Office-$151,918: Kowloon-Canton Railway-$101,800, mainly due to the through traffic to Canton being maintained; Rent of Government Properties- $84,384; Interest-$170,515; and Miscellaneous Receipts-$2,284,859 (including refund of $1,963,359 Public Works Loan expenditure).
In the year 1923 Land Sales netted $3,488,797 as against $1,635,236 in 1928. If these figures are deducted from the respective total Revenue and the above referred to sum of $1,963,359 for Public Works Loan Expenditure deducted from the 1928 Revenue it will be observed that 1923 produced $21,294,966 as against $21,369,804 collected in 1928. These figures may be accepted as a fair index that the Colony has more. than regained its feet after the serious set back experienced due to the disastrous strike of 1925.
1929.
The Crown Agents Accounts for the months of May and June are not yet available, consequently the actual collection for the 1st half year of 1929 on the heads Interest, Other Miscellaneous Receipts, Widows & Orphans' Pensions Contributions are approximate. The total Revenue for 1st half year amounts to $11,477,843 which exceeds six-twelfths of the year's estimate by about 3.38 lacs. The revised estimated revenue for the 2nd half year is $11,222,157 bringing the revised estimated total Revenue for 1929 to $22,700,000 or about $422,000 in excess of the estimate. Certain fees payable annually in advance account for the difference between the totals for 1st and 2nd half year.
Receipts from Land Sales in the 1st half year 1929 amounted to $672,719 and the sum of $577,281 for the 2nd half year, includes arrears of premia due from the Kowloon Tong Estate and Praya East Marine Lot-holders, which it is expected will be paid into Treasury. The present active demand for Land appears to be steady.
Appendix "A" shows the estimated financial position of the Colony at the close of the year 1929. The estimated liquid balance to be carried to the year 1930 is $6,224.977 which is $379,368 less than the liquid balance that was available on 1st January, 1929, the reduction being due to the estimated deficit of revenue under expenditure.