352
NOTES.
Table III.
ESTIMATES. REVISED
ORIGINAL
EXCESS
ESTIMATES.
OVER
HEAD.
ORIGINAL
ESTIMATES.
*
f
4
22.
Medical Department
26.
2,177,835
2,100,000
222,165
Kowloon-Canton Railway
270. Military Contribution
832,346
1,250,000
417,654
5,689,578
5,880,721
191,146
20.
Charitable Services
FEL FIR
425,000
210,226
More active working and repair of special damages.
Additional payment in respect of
Epidemics and refugees.
1937.
Refugees and additional grants to Chinese charities.
30.
Pensious
2,500,000
2,880,000
380,000
More Pensions.
32.
Public Works Recurrent
1,600,200
1,900,000
299,800
Typhoon repairs.
33.
Public Works Extraordinary..
1,277,850
2,150,000
872,150
Additional works.
Construction of
Camps for destitute refugees
estimated at $550,000.
5
7. The net result, if the revised estimates of revenue and expenditure are realised, will be to increase the surplus of assets at 31st December, 1938, to $14,506,923; but in pursuance of the new accounting system explained in Sessional Paper 9 of 1938, it will be necessary to take votes at the end of the year for the following amounts to be charged to revenue:—
Building loans Unallocated Stores
$330,000 $650,000
As explained in para-
The net surplus will thus be reduced to $13,526,923. graph 16 below it is anticipated that $12,357,783 of this will then have been advanced against loan account.
Revenue.
C. PROSPECTIVE REVENUE AND EXPENDITURE OF 1939.
8. The revenue for 1939, which is put at $35.257,621, has been estimated generally on the assumption that the economic activity of the Colony will be maintained at not far short of its present level. This may appear optimistic, but so
long as hostilities continue in China, of the cessation of which there is unfortu- nately no early prospect, the present population of the Colony is likely to be main- tained, while the transfer of businesses and manufactures to Hong Kong appears
to be still going on. Building in prospect is a good deal higher than a year ago.
9. The variations in the estimates for 1939 of the principal items of revenue compared with the 1938 estimates are shown in Table IV.
ITEM.
Table IV.
1938
1939
APPROVED REVISED ESTIMATE. ESTIMATE.
ESTIMATE.
Import duty on Liquor
,་
Motor Spirit Tobacco
1,175,000 1,500,000
770,000
1.500,000
900,000
900,000
3,800,000
4,050,000
Estate Duty
Duty on Locally Manufactured Liquor Assessed Taxes (Rates)
Stamp Duties
4,600,000
975,000
1,250,000
1,250,000
6,000,000 6,000,000
6.200,000
Water Consumption and Meter Rents
1,250,000 1,250,000 2,150,000 2,300,000 1.900,000 2,100,000
1,250,000
2,300,000
2,096,000
Post Office
2.437.050 2,950,000
2.927,000
Kowloon-Canton Railway
Land Sales
1,044,900 1,900,000 355,000 1,100,000
1,784,000
750,000
In nearly all cases increases are to be explained by the assumption of increased economic activity but special comment may be made on the following:
1----
(i) Assessed Taxes (Rates); the full effect of the higher rents now prevail- ing is not yet reflected in the assessment and allowance is made for new properties now under construction,
(ii) Water Consumption, etc.; calculated at the proposed new rates of
charge, as set out in Appendix VIII (A).
(iii) Kowloon-Canton Railway, while much of the present goods traffic is connected with the war in China, it may be assumed that a per- manent increase will result from the linking-up with the Canton- Hankow Line, and that passenger traffic may be expected to revive if pence is restored.
The estimate may, however, be entirely falsified
if military operations should lead to suspension of through traffic for a substantial period.
10. It has again been found possible to frame the estimates for the coming year without the necessity of proposing any new or increased taxation.
353