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passages being
7. Only one head of expenditure was exceeded during the year, No. 28 Miscellaneous Services due to the cost of Government servants $87,758 more than the sum of $400,000 originally estimated.
8. The final figures were Revenue $32,099,278, Expenditure $31,122,715, Sur- plus $976,563 which added to the surplus brought forward on 1st January 1933 gave a total excess of Assets over Liabilities on 31st December, 1933, of $13,823,625.
9. The Public Works 6% Loan (Ordinance No. 14 of 1927) was converted during the year into a loan of 4% for 20 years under the provisions of Ordinance No. 15 of 1933. $4,838,000 out of the original amount of $4,927,000 was con- verted leaving only $89,000 to be paid off in cash.
1934.
10. The Revenue for the year was estimated at $31,731,625 a decrease of $2,270,950 compared with the approved estimate of 1933. The revised estimate for the year is now placed at $29,670,634 or $2,060,991 less than the approved estimate.
11. The total revenue for the half year ending 30th June amounted to $15,172,142. This is $693,670 less than one half of the estimate of $31,731,626 for the whole year.
12. The principal sources of revenue are shewn in the following table :-
3
13. It will be seen that the duty on liquor and tobacco has been practically maintained and it is hoped that only a small decrease will be shewn on the year's figures. Port and Harbour dues shew a decrease due to the higher rate of exchange and to a reduction in tonnage of shipping.
The Opium Monopoly is again down due to the unpopularity of Singapore opium and trade depression affecting the sales of Kamshan. The decreased receipts from Stamp Duties, Postages and Land Sales are also due to trade depression. The rate for Empire postage was reduced on 1st July from twelve cents per ounce to ten The Kowloon Canton Railway continues to shew larger takings which it is hoped will be maintained. The services have been improved and the traffic con- tinues to grow.
cents.
14. The excess charge on water has been reduced by 15% as from 1st September to all who pay their accounts within fourteen days of issue. This reduction will of course affect the revenue and it is not anticipated that the full amount of $2,000,000 estimated will be received.
15. Expenditure for the year was originally estimated at $33,442,695 or $1,711,070 more than the estimate of revenue. As the original estimates were based on an exchange of $1=1s. 3d. and as the average rate for the first six months worked out at $1-1s. 54d it was considered desirable to place further funds at the disposal of the Director of Public Works and Council approved of Supplementary votes as under :-
Head 32 Public Works Department
Head 34 Public Works Extraordinary.
.$ 20,000 752,000
Estimate 1984.
Total
1st Quarter.
2nd Quarter.
1st Half Year.
Import Duty on Liquer
1,000,000
241,874
Import Duty on Tobacco
2,800,000
690,578
244,651
762,934
486,525
1,458,512
+
Duty on Locally Manufactur-
ed Liquor
1,100,000
306,421
242,050
549,871
Port & Harbour Dues
695,000
142,481
.149,879
292:360
Ferries
416,000
101,648
101,550
203,198
Liquor Licences
410,000 1
117,274
57,357
174,681
Opium Monopoly
1,300,000
200,552
.168,759
369,811
Assessed Taxes (Rates)
6,700,000
1,689,714
1,649,331
3,339,045
Estate Duty
1,000,000
382,006
200,857
582,863
Stamp Duties
2,200,000
504,464
492,297
996,761
Water Excess & Meter Renta.
2,000,000
662;637
968,770
981,407
Message Fees (Wireless)
720,000
159,421
157,486
316,907
Postage
1,300,000
297,342
292,829
590,171
Kowloon Canton Railway
1,581.000
456,404
897,295
853,697
Rent of Government Property
1,545,000
396,390
408,606
804,996
'Land Sales
1,200,000
142,785
160,960
303,745
•
Total
25,966,000
6,391,991
5,856,509
12,248,500
The revised estimate of expenditure is placed at $30.893,000.
16. The revised figures for 1934 are therefore Expenditure $30,893,000, Revenue $29,670,634 a deficit of $1,222,366, thereby reducing the excess of Assets over Liabilities on 1st January, 1934 from $13,823,625 to $12,601,259 on the 31st December, 1934.
17. Reference has been made on many occasions during the past four years to the floating of a loan for the purpose of carrying out certain public works. At the end of 1933 $6,934,474 had been advanced from surplus balances pending such a loan. In June last authority was obtained under Ordinance No. 11 of 1934 to borrow up to $25,000,000. It is estimated that approximately $11,000,000 will have been spent by the end of the year and to this must be added approximately $3,400,000 (depend- ing on exchange) required to be added to the other monies available for the redemp- tion in October 1934 of the Hong Kong 31% Inscribed Stock 1918/43 amounting to £1,485.733. It was decided therefore to issue bonds to the amount of $14,000,000 only, the balance being issued on one or more occasions in the future as required. The loan was issued at 99% bearing interest at 34% and was heavily oversubscribed.
1935.
18. The estimated revenue for 1935 amounts to $30,585,650, a decrease of $1,145,975 as compared with the estimates for 1934. No alterations in taxation are proposed.
19. The revenue from Duties is estimated to yield $5,513,000 a decrease of $152,000 on the estimate for 1934, or $320,467 below the actual receipts of 1933.
20. Under Port and Harbour Dues the estimate of $610,000 shows a reduction of $85,000 below the estimate for 1934, and a reduction of $69,385 below the actual receipts of 1933. This reduction is caused by the higher rate of exchange and by a reduction in tonnage.
The
21. The receipts from Head 3, Licences and Internal Revenue, have been reduced to $14,592,850. This shows a falling off of $1,370,525 compared with the original estimate of 1934. The largest reduction is shewn under Opium Monopoly. estimate for 1934 was $1,300,000 but it is not expected that more than $700,000 will be received. The estimate for 1935 has been further reduced by $50,000 to $650,000. The explanation is the same as that given in paragraph 13 for 1934.
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