Enclosure No.4.
Extract from the Hong Kong Hansard Report of
27th June. 1935.
35
(1934 SUPPPLEMENTARY) APPROPRIATION
ORDINANCE, 1935.
THE COLONIAL TREASURER moved the first reading of a Bill intituled "An Ordinance to authorize the Appropriation of a Supplementary Sum of Six hundred and thirty-five thousand four hundred and forty-two Dollars and twenty-seven Cents to defray the Charges of the year 1934." He said: The details of all items making up this sum have already been fully explained to Honourable Members from time to time and have received the approval of the Finance Committee and of this Council in the usual way.
The detailed statement of Expenditure and the Report on the Finances for 1934, copies of which have already been furnished to each Member, give the reasons for the excesses, $635,442.27 represents the total of the supplementary appropriation required under the various Heads exceeded, no account being allowed for savings on other Heads. Actually of course there was a large saving, the total expenditure being $31,149,156, against an estimate of $33,442,695, a decrease of $2,293,539. Ordinary expenditure for the year amounted to $27,364,990, as compared with the estimate of $29,750,745, a decrease of $2,385,755, but Public Works Extra- ordinary amounted to $3,784,166 and exceeded the original estimate by $192,216. It is the first time for many years that this head has been exceeded, due to the speedy manner in which the programme of works has been executed. Honourable Members may recollect that I foreshadowed this in my remarks when intro- ducing last year's supplementary appropriation account in June, 1934. The sum of $100,000, voted from Revenue for Government House and City Development was, as Members are aware, not utilised, all payments on this service being debited to a special fund under the authority of Ordinance No. 30 of 1934.
Revenue for the year amounted to $29,574,286, or $2,157,339 below the original estimate of $31,731,625. The excess of expenditure over revenue, viz. $1,574,870, reduces the surplus balance of $13,823,625 on the 1st January 1934, to $12,248,755 on the 31st December, 1934.
The estimates for the year were based on $1-1s. 3d. and a deficit of $1,711,070 was budgetted for. Exchange, however, never fell below 1s. 44d, while the average rate throughout the year was 1s. 6.1/16d, consequently fewer dollars were required as compared with the estimates to satisfy sterling commitments such as salaries, loan charges, pensions and stores. Of $12,955,767 provided for Personal Emoluments, only $11,213,115 was expended, due for the most part to the rise in exchange. Similarly out of a provision of $4,871,357 under "Other Charges" only $4,294,183 was required. During the year a supplementary budget was passed by a resolution of Council dated July 26th, 1934, adding an extra sum of $752,000 to the provision originally granted under Public Works Extra- ordinary.
It is customary in introducing this Bill to give Honourable Members some idea of the financial position during the current year. At the end of May the total revenue was approximately $11,980,000, which is $760,000 less than the proportionate amount of the Estimates over a period of five months.
The principal shortfalls occur in the following items.-Liquor and Tobacco Duties, Stamp Duties, Railway Receipts, Opium Monopoly and Land Sales.
On the other hand receipts from Assessed Taxes (Rates) were maintained mainly owing to advance payments in order to obtain refunds on empty tenements repayable later. I do not expect this item of revenue to shew the estimate of $6,300,000 for the year. Receipts from water excess supply and meter rent were maintained as also were Radio Message Fees.