249
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33. On the basis of the foregoing figures the position at the close of the year 1937 is arrived at as under :-
--
Actual excess of assets over liabilities as at 1.1.36... $12,387,669
Revised estimate of revenue 1936
28,415,970
40,803,639
Revised estimate of expenditure 1936
29,420,000
Estimated excess 31.12.36
11,383,639
Estimated revenue 1937
28,760,250
40,143,889
32.259.160
Estimated expenditure 1937
Anticipated Excess of Assets over Liabilities at
31.12.37
7.884,720
34. The anticipated surplus is therefore, $2,115,271 below the $10,000,000 mark at which figure it has hitherto been the Colony's aim to maintain it. It has, however, been found impossible, owing to the Colony's heavy commitments on Medical Services, the new Gaol and air subsidies, to restrict expenditure to either the revenue for 1937 or even to the revenue for 1937 plus the excess of $1,583,639 over the $10,000,000 mark in spite of the increases in taxation mentioned previously in this memorandum. Sterling salaries roughly account for £500,000 or $8,000,000 at 1s. 3d. as against $6,000,000 at 1s. 84. the Estimates rate for 1936, and it is unlikely in the circumstances that it will be possible to discontinue the salary levy on public officers during 1937. This, if maintained at the present rates, will reduce the cost of personal emoluments by $480,000 and will increase the surplus mentioned previously from $7,884.729 to $8,364,729. It will be observed that it is proposed to pay salaries at a minimum exchange of $1=1s. 3d. or three farthings lower than the rate for the last quarter of 1936. Other sterling commitments amounting to approximately £250,000 have for convenience been reckoned also at 1s. 3d. although to-day's rate is somewhat below this figure.
35. The budget has not been an easy one to prepare owing to the large requirements both of a capital of a recurrent nature occasioned by the opening of the new Queen Mary Hospital and of the new Gaol. A glance at the Public Works Extraordinary programme will shew that our heavy commitments will be met during 1937 and that given a measure of prosperity the budget for 1938 should be prepared with less difficulty.
36. LOAN WORKS. The 34% Dollar Bonds amounting to $14,000,000 issued in 1934 at 99% produced $13,860,000. At the end of 1935 $18,042,298.66 had been expended the balance of $4,182,298.66 being charged against surplus balances. This method of finance has been continued during 1936. On 30th June, 1936. surplus balances had been drawn on to the extent of $6,664,703 and the total amount spent on the items enumerated in the Schedule to the 33% Dollar Loan Ordinance No. 11 of 1934 (as amended by Resolutions of Council dated 16th May. 1935, and 19th March, 1936) on that date was $20.524,703. The revised estimated total expenditure against loan works as at 31st December, 1936, amounts to $23,524,020 of which $9,664,020 will have been advanced from surplus balances. It will probably be necessary during 1937 to borrow further money in order to liquidate a part of these advances.
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37. A detailed account of loan expenditure is given in Appendix VI (b) of the draft estimates. The revised estimate of several items has been amended:-Item 2 (b) (3) Gorge Dam has been reduced from $8,750,000 to $8,325,000; item 2 (b) (1) second cross harbour pipe from $250,000 to $173,348.32 as the work is completed; item 4 New Gaol at Stanley from $4,500,000 to $4,400,000; Tytam Tuk Catchwaters from $720,000 to $700,000; item 6 (c) Wireless Telegraph Station has been increased from $95,000 to $127,000 owing to the new demands on account of facilities for air port.
38. From the savings shewn above it has been found possible to provide for a new item, Central Market $550.000 leaving $49,990.35 unallocated. It is proposed to demolish entirely the old Central Market completed in 1895 which has become unsafe owing to structural defects discovered this year. The question of making good these defects was considered but the cost was so high and the market is so out of date and congested that it would have been a waste of money. The new market will be built on up-to-date lines and will provide accommodation for more stall holders with slightly larger space per stall. Government should, therefore, be rewarded in due course with greater revenue under market dues.
39. A statement of the Receipts and Payments under Government House and City Development Fund is given as Appendix VII. Two small items, explained in the statement, have been added to the receipts during 1936. There are no payments to record and the total expenditure of $421,092.88 as at 31st December 1935, will remain the same on the 31st December, 1936, leaving a balance of $839,704.12 in the Fund.
THE TREASURY,
How KONG,
11th September, 1936.
EDWIN TAYLOR.
Colonial Treasurer.
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