Enclosure No. 5.
244
HONG KONG.
Memorandum on the Financial Position, 1935, 1936 and 1937,
by
The COLONIAL TREASURER.
1935.
The revenue for the year amounted to $28,430,550 as against the original estimate of $30,585,650 and the revised estimate of $28,328,034. The actual revenue for the year was short of the estimate by $2,155,100 but exceeded the revised estimate by $102,516.
2. The receipts from duties fell short of the estimate by $339,163. All items shewed a decrease, the largest being under Locally Manufactured Liquor which was down by $171,712 due to a falling off in consumption. Duty on imported liquor was also short of the estimate by $94,965. This was due primarily to higher exchange as these dues were reckoned at the exchange rate of 1s. 4d. on which the estimates for 1935 were based whereas the average rate for the whole year was 1s. 11d.
3. Port and Harbour Dues showed a decrease of $124,393 accounted for also by the higher exchange as Light Dues are reckoned on the conventional dollar.
The
4. The Head Licences and Internal Revenue was down by $811,147. largest decreases took place in the following items. The Opium Monopoly was estimated to produce $650,000 only yielded $352,714 due to decrease in sales and competition of illicit opium. Assessed Taxes (Rates) were down by $169,609 due to more vacant tenements. Stamp Duties shewed a decrease of $132,349 due to trade depression. The same reason may be assigned to the decreases of $95,653 and $59,847 in the Betting and Entertainment Taxes respectively.
5. The Kowloon Canton Railway receipts were $281,225 below the estimate due to river boat competition and fewer passengers on the local section.
6. Interest was $81,460 less than anticipated due to higher exchange and less funds available locally for short term investment. Land Sales were again lower than the estimate, only $244,957 being received against an estimate of $600,000.
7. The expenditure for the year amounted to $28,291,636 against an estimate of $32,556,102 a decrease of $4,264,466. Exchange was based on $11s. 4d. but the average rate for the whole year was 1s. 11d. Consequently large under expenditure occurred on such items as salaries, pensions and stores. Under personal emoluments only $10,248,600 was expended whereas provision was made for $12,701,739. Pensions cost $1,555,605 against $2,070,000 provided.
8. Three heads of expenditure were exceeded during the year :-
Defence: (C) Military Contributions by
$22,491
As the actual revenue for 1934 exceeded the revised estimate the adjust- ment provided for in the 1935 Estimates was insufficient.
Miscellaneous Services by
$85,648
Depreciation of sterling funds due to the higher dollar sterling exchange necessitated a supplementary vote of $298,233.
Charitable Services by
$37,123
Financial assistance was given to the Tung Wah, Kwong Wah and Tung Wah Eastern Hospitals. Government decided to give dollar for dollar on the special collections made by the Hospital Directors. This cost $47,482. A special grant of $10,000 for building extension was also made to the Little Sisters of the Poor.