HONG KONG LEGISLATIVE COUNCIL.
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While, therefore, expenditure was only $1,372,919 over the sum originally voted due to economy measures, revenue exceeded the original estimates of $27,488,759 by $5,657,965. It will be seen, therefore, that the Colony finished the year 1931 in a much more favourable position than could possibly have been hoped for at the beginning of the year: In my memorandum which was laid on the table with the Estimates for 1932 in October last the revised estimate of expenditure was given as $31,152,500. The actual expenditure was, however, $31,160,774 an excess of $8,274 only over the revised estimate. It was then estimated that the budget for 1931 would shew the small surplus of $51,868 compared with a deficit of $2,300,000 when the estimates were originally drawn up, but I pointed out that if Land Sales were maintained at the same average as during the first six months the revised estimate would be exceeded. This was happily the case, $989,487 being received during the last three months. If the Revenue of the year $33,146,724 be compared with the Expenditure $31,160,774 the excess amounts to $1,985,950, thus increasing the excess of assets over liabilities from $9.361,679 on the 1st January, 1931, to $11,347,629 on the 31st December, 1931.
As Treasury financial returns are necessarily three months behind the period to which they refer, the last return published being that for April, honourable members will perhaps be interested to hear what the position is at the end of June. I can, of course, only give very approximate figures but they are sufficiently near for this purpose.
The total revenue for the first half of 1932 amounts to $16,894,000 which is $101,755 less than one half of the estimate of $33,991,510 for the whole year. There is a shortfall of $324,000 on liquor and tobacco duties due to the rise in the dollar, these duties being based on the conventional dollar which for estimating purposes was reckoned at is 8d over 1s equals 20 over 12. Land Sales shew a deficit of $225,000 for the half year and I am afraid that the estimated receipts from this source will not be maintained during 1932. These shortages have, however, been counter-balanced by higher receipts under the Heads "Licences & Internal Revenue", "Fees of Court or Office" and "Interest".
The approximate expenditure to 30th June is $15,392,000 which is $2,098,830 below one half of the estimated expenditure of $34,981,661 for the year. The under-expenditure is due principally to the rise in the dollar, savings being shewn under Personal Emoluments, Pensions and Public Debt. Payments on account of Public Works Extraordinary are always below the average for the first six months. During the last six months of the financial year general expenditure is always normally greater whilst added to this, Council has just approved of supplementary expenditure on Public Works amounting to $746,950, so that the expenditure figures for the second half of the year will he considerably greater than those for the half year just ended.
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