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9. The final figures were Revenue $28,430,550, Expenditure $28,291,636. Excess $138,914, which added to the surplus brought forward on 1st January. 1935, gives a total excess of Assets over Liabilities on 31st December, 1935, of $12,387,669.
10. Public Debt. The Conversion Loan raised in 1933 amounts to $4,838,000 with a sinking fund of £31,222 on 31st December, 1935, and the 31% Dollar Loan raised in 1934 amounts to $13,440,000. The original sum borrowed was $14,000,000 but during the year bonds to the value of $560,000 were redeemed. The total Public Debt of the Colony was, therefore, $18,278,000 at the end of 1935.
1936.
11. The revenue for the year was estimated at $26,671.845, a decrease of $3,913.805 compared with the approved estimate of 1935. The revised estimate for the year is now placed at $28,415,970 or $1,744,125 greater than the approved estimate.
12. The total revenue for the half year ending 30th June amounted to $14,399,799. This is $191,814 greater than one half of the revised estimate for the whole year.
13. The principal sources of revenue are shewn in the following table :--
Source of Revenue.
Estimate 1936.
1st Quarter 2nd Quarter
1936.
Total
1936. 1st half year.
Import Duty on Liquo
800,000
256,254
Import Duty on Motor
Spirit
670,000
161,093
Import Duty on Tobacco;
2,800,000
1,078,840
207,119 +63,373
158,464 319,557 742,852 1,821,692
Import Duty on Locally
Manufactured Liquor
1.000,000
246,341
203,220
449,561
Port and Harbour Due
540,000
154,582
161,193
315,775
Ferry Licences
406,000
101,599
101,602
203,201
Liquor Licences
370,000
98,257
46,079
144,336
Opium Monopoly
300,000
72,612
64,447
137,059
Assessed Taxes (Rates).
5,800,000
1,578,813
1,414,936
2,993,749
Estate Duty
1,000,000
358,523
515,201
873,724
Stamp Duty
1.900,000
561,579
484.950
1,046,529
Water Excess Supply;
and Meter Rents
1,414,000
552,887
273,886
826,773
Message Fees (Wire.
less)
630,000
176,676
157,819
334,495
Postage
1,160,000
304,648
301,412
606,060
Kowloon Canton Rail-
way
1,323,000
383,088
304,266
687,354
Rent of Government;
Property
1,651,800
377,704
415,944
Land Sales
302,000
16,085
15,252
793,648 31,337
3
the receipts for the second half year should be greater. The trade in locally manu- factured liquor shews signs of contraction and it is very doubtful if the estimate of $1,000,000 will be attained. Port and Harbour Dues are up owing to the fact that light dues are still collected on the conventional dollar basis. The receipts fromn the Opium Monopoly still continue their downward trend. Estate Duty is above the estimate owing to one large estate producing $345,133. Stamp Duty is up as the bank note circulation has increased and bills of exchange have yielded more. Land Sales have fallen away and are now almost negligible as an item of revenue.
=
15. Expenditure for the year was originally estimated at $29,598,148 or $2,926,303 more than the estimate of revenue. As the original estimates for the year were based on an exchange of $11s. 8d. and as the rate in December, 1935, had fallen to 1s. 38d. with a decided tendency to a lower level, it was evident that, unless radical steps were taken, the deficit of $2,926,303 budgetted for would be further increased and the Colony's surplus balance reduced beyond the safety point. Steps were accordingly taken immediately to adjust the position by means of reduction of expenditure and increase of taxation. Departmental votes were cut down in a drastic manner and a levy on the salaries of public officers with effect from 1st January, 1936, was enacted by Ordinance No. 17 of 1936.
16. The saving by this enactment for the whole year is estimated at slightly more than $1,000,000. Concurrently, increases in tobacco, liquor, petrol duties, postage rates, estate duty, marine survey fees, radio broadcasting fees were imposed during the year and the deficit which it was once feared would exceed $5,000,000 on the year's working is expected to amount to no more than $1,004,030. The revised figures for each head of revenue and each head of expenditure are given in the draft estimates for 1937 the totals are as follows:
Revised Revenue for 1936 Revised Expenditure for 1936
Deficit
$28,415,970 29,420,000
$ 1,004,080
The estimated deficit, therefore, will reduce the excess of assets over liabilities of $12,387,669 on the 1st January, 1936, to $11.383,639 on the 31st December, 1936.
14. The duties on liquor and tobacco were increased with effect from the 1st April and consequently receipts for the first half year are greater than one half of the annual estimate. Duty on motor spirit shews a decline on the estimate. The duty was, how- ever, raised from 25 cents per gallon to 30 cents per gallon on the 24th June so that
1937.
17. The estimated revenue for 1937 amounts to $28,760,250 an increase of $2,088,405 as compared with the approved estimates of 1936. Included in this figure is the sum of $500,000 taken from the Reserve Account of the 1925 Trade Loan leaving sufficient in that account to write off all the capital outstanding should that be necessary. Deducting this sum of $500,000 from the total revenue for the year leaves $28,260,250 which may be regarded as the true estimate of revenue for 1937. Comparing this latter figure with the approved estimates for 1936 of $26,671.845 it will be seen that there is an increase of $1,588,405.
18. The revenue from duties is estimated to produce $6,415,000 an increase of $1,080.000 on the estimate for 1936, due to the increases in liquor, tobacco and motor spirit duties brought into force in 1986.
19. The receipts from Head 3, Licences and Internal Revenue, have been increased to $13,188,600 as compared with the original estimate of $12,769,495 in 1936. This is still much below the peak year of 1933 when $16,664,799 was brought to account, but it must be remembered that in 1933 $6,434,969 was collected in Rates as against an estimate of $5,600,000 for 1937, and $1,152,852 was received from the Opium Monopoly as against an estimate of $250,000 for 1937.
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