Ο
FINANCIAL
30.8.35
2
1 M.G. Tel No. 211
Proposals for balancing of
budget for
for 1936
We knew that Hong Kong's severe trade
depression was bound to have its effects upon the
revenue of the Colony. The influence of the
depression was felt before the 1935 Estimates were
framed, and the Hong Kong Government took steps by
economy and retrenchment to reduce estimated
expenditure to accord with the reduced estimate of
revenue, as the following figures show: -
1934 Estimates
1935 Estimates
Revenue:
Ordinary
30,531,625
29,985,650
Land Sales
1,200,000
600,000
Expenditure:
Ordinary
29,750,745
3,691,950
28,976,652
3,579,450
Extraordinary
Nevertheless, owing to the persistence
and intensification of the depression, these
efforts have not proved sufficient to meet the
fall in revenue, and the 0.A.G. states that the
1936 Estimates, after severe cutting of expenditure
and after allowing for relief to the extent of
over $500,000 on water charges, show a deficit of
$2,926,000 with estimates framed on the basis of
1/8 to the Hong Kong dollar.
Thisdeficit the 0.A.G. proposes to meet
by financing Public Works Extraordinary out of
surplus balances to the extent of $2,096,000. This
sum represents the amount by which anticipated
surplus balances at the end of the current year
will exceed $10,000,000, which is the figure which
the Secretary of State laid down early in 1933
((5)