Enclosure No. 4.
HONG KONG.
•1934 1935 1936.
248
Memorandum on the Financial Position
1934, 1935 & 1936.
By the Colonial Treasurer.
1934.
1. The Revenue for the year amounted to $29,574,286 as against the original estimate of $31,731,625 and the revised estimate of $29,670,634. The actual revenue for the year fell short of the estimate by $2,157,339 and of the revised estimate by $96,348.
2. The Import Duty on both Motor Spirit and Tobacco exceeded the approved estimate by $30,544 and $153,834 respectively. On the other hand the duty on Liquor and Locally Manufactured Liquor shewed decreases of $89,828 and $36,327.
3. The Opium Monopoly which was expected to yield $1,300,000 shewed the largest decrease and was short of the estimate by $644,932 due to a further re- duction in sales. The next largest decrease was under Land Sales which were $641,527 less than the estimate of $1,200,000, the demand for land having fallen off considerably.
4. The continued trade depression is responsible for the decrease of $282,583 under Stamp Duties, while the temporary rebate on excess water bills accounts for the estimate under Water Excess Supply and Meter Rents being down by $116,393.
5. Betting Duty was short of the estimate by $113,246 due to the reduction in the percentage payable on pari-mutuel betting and to less betting. Postages shewed a decrease of $111,625 due in part to a reduction in rates. Other important items shewing decreases were Light Dues $103,,462 on account of the higher exchange, and Assessed Taxes (Rates) $96,771 attributed to more vacant tenements and re- ductions in rents.
6. The increases include Estate Duty which exceeded the estimate by $77,717 on account of two large estates, Railway (Auxiliary Operations, Foreign Haulage) $79,330 due to an increase in number of trains, and Leased Lands $74,754.
7. The expenditure for the year amounted to $31,149,156 against an estimate of $33,442,695, a decrease of $2,293,539. Exchange was based on $1-1s/3d. but the average rate throughout the year was 1s/61d, consequently considerable under-expenditure took place on such items as salaries, pensions, loan charges and stores. The under-expenditure on personal emoluments alone amounted to $1,742,652. Council approved of a supplementary budget increasing votes under the control of the Director of Public Works by $772,000.
8. Five heads of expenditure were exceeded during the year :-
No. 18, Magistracy, Hong Kong, by $6,704.
No. 19, Magistracy, Kowloon, by $4,139.
These increases were due to changes in personnel.
No. 27 (C), Military Contribution, by $93,987.
The increase was due to the estimated overpayment on account of 1933 revenue assessable for military contribution being calculated at $483,346 but the final figures for 1933 amounted to $389,359.