251
22. The receipts from the Bets and Sweeps tax and from the Entertainment Tax again show reductions. The estimate for 1936 being $100,000 and $70,000 respec- tively below the estimate for 1935. Stamp duties also shew a falling off of $200,000. No revenue is estimated under Building Covenant Fines as the penalty rates have been suspended.
23. The opium monopoly still declines and the estimate for 1936 is perhaps In 1932 only 3 years ago it was estimated rather optimistically placed at $300,000. at $3,000,000. Quite a number of pawnbrokers' establishments have been closed resulting in the 1935 estimate of $270,000 being reduced to $225,000 for 1936.
24. Head No. 4, Fees of Court or Office, &c., has been reduced from $2,189, 250 in 1935 to $2,172,550 in 1936. There are various small increases and decreases on the many subheads of this Head of Revenue. The principal increases more registrations are are shewn under China Companies Fees of $50,000 as expected. Medical Examination of Emigrants Fees has been increased from $100,000 in 1935 to $180,000 in 1936 as it is expected that Emigration will in- A new subhead is crease. Survey of Steamships is estimated at $5,000 more. opened for Fumigating and Disinfecting Fees estimated to produce $8,000 as Government has recently taken over the Bureau, the expenditure on which will be found under Harbour Department and Medical Department.
Con-
25. The decreases of importance are Analysis Fees from $35,000 to $25,000. Deeds Registration from $87,500 to $71,000, Gunpowder Storage from $45,000 to $32,000, Trade Marks Registration from $32,000 to $17,000, Water Service from $22,000 to $10,000, all of which may be attributed to trade depression. tributions to the Widows' and Orphans' Pension Scheme are estimated to produce $338,000 as against $367,000 in 1935 owing to higher exchange. Receipts under Medical Treatment shew a falling off of $20,000, as it is anticipated that fewer private patients will be treated. Incidentally it should be remarked that it is with the greatest difficulty in these times of depression that payment of overdue hospital accounts is obtained and that many outstanding bills have to be written off notwith- standing the efforts made first by the Medical Authorities and later by the Treasury to obtain settlement. Sunday Cargo Permits have been decreased from $110,000 to $75,000 as the fees were reduced in 1935.
26. The receipts under Head 5, Post Office, show a decrease of $60,000 owing to a reduction in postal rates.
27. The Kowloon Canton Railway figures are $1,692,900 for 1935 and $1,323,000 for 1936, a decrease of $369,900. There are three causes. Firstly, the fares on the Canton steamers have been reduced resulting in traffic being deflected from rail to river. Secondly, a large decrease in the passenger traffic to Shum Chun, and, thirdly, after 30th April, 1936, the express and fast through trains will not be hauled over the Chinese Section by Engines belonging to the British Section and the charges for this service will disappear. Reductions, however, appear under expenditure, the coal bill being reduced by $81,655 whilst several drivers, firemen, coolies and cleaners will be discharged.
28. Head No. 7, Rent of Government Property, shews a small decrease of $31,200. The receipts from Markets are estimated to produce $53,000 more in 1936 as new markets are opened. On the other hand Permits for Encroachments shew a reduction of $55,000 and rent of Government Buildings a reduction of $25,000 principally due to the old City Hall reverting to Government after being let at $20,000 per annum.
29. Interest. This head was increased in 1935 by $100,000 over 1934 and is now reduced from $330,000 to $200,000 for 1936 as it is not anticipated that so much money will be available for short term investments.
30. Head 9, Miscellaneous Receipts, is estimated to produce $588,000 which is more or less normal. The 1935 figure of $1,524,650 included the non-recurrent item of $975,410 being 20% deducted and held in suspense until the question of assessability to Military Contribution on certain exchange transactions was settled. This sum is credited to revenue in 1935.
5.
31. The estimated receipts from Land Sales have been reduced from $600,000 to $302,000 as it is not anticipated that much land will be sold during 1936.
·
32. Expenditure is estimated in 1936 at a total of $29,598,148 as under :-
Ordinary Expenditure
Extraordinary Expenditure
$26,390,588
3,207,560
$29,598,148
and for purposes of conversion the dollar has been taken at 1s. 8d. throughout. The following is a summary of the estimated Revenue and Expenditure for 1936.
Revenue.
Expenditure.
Ordinary
Land Sales
$26,309,845
302,000
Ordinary
Extraordinary
$26,390,588
3,207,560
$26,671,845
$29,598,148
This shews a deficit on the year's working of $2,926,303.
33. On the basis of the foregoing figures the position at the close of the year
1935 is arrived at as under :----
Actual excess as at 1. 1. 35.
Revised estimate of revenue 1935.
Revised estimate of expenditure 1935.
Estimated excess at 31. 12. 35.
Estimated revenue 1936.
Estimated expenditure 1936.
Anticipated Excess of Assets over Liabilities at 31. 12. 36.
$12,248,755
28,328,034
$40,576,789
28,481,000
$12,095,789
26,671,845
$38,767,634
29,598,148
$9,169,486
34. The Secretary of State for the Colonies has ruled that in framing a budget the excess of assets over liabilities must be maintained at not less than $10,000,000. The above statement shews $830,514 below this mark. It must, however, be re- membered that the computations throughout the estimates for sterling commitments and for revenue collected on a sterling basis have been reckoned on an exchange of $1-1s. 8d. so that when exchange is higher than 1s. 8d. under expenditure is immediately apparent. It is calculated that should exchange remain in the neigh- bourhood of 2s/- the excess of assets over liabilities as at 31st December, 1936, will not be less than $10,000,000. Should, however, exchange drop immediate steps will be taken to adjust the position either by decreasing expenditure or by increas- ing revenue or by both means so that the $10,000,000 surplus will be preserved. The methods proposed will be outlined by the Colonial Secretary when introducing the budget on the 12th instant.
252