416
2
Table II.
X
417
Expenditure.
non-recurrent
3. The expenditure of the year was $37,175,898, being $3,796,349 in excess of the original estimate; but this included exceptional and charges, totalling $2.203,216, for un-allocated stores, tribution, due to changes in the accounting systems. individual Heads were:-
loans and military con- The principal excesses on
1938.
1939.
ITEM.
INCREASE
ACTUAL.
Head
SA Post Office
* 122.171 (Increased payments for
transport of mail).
APPROVED REVISED ESTIMATE. ESTIMATE. APPROVED ESTIMATE.
OVER
$
22
Medical Department
229,513 (Epidemics and larger
population).
Import Duty on Liquor
+2
"}
Motor Spirit
"
13
Tobacco
་་
1,586,705 1,500,000 1,750,000 955,034 900,000 1,250,000 5,190,701 4,600.000 5,900,000
250,000
350,000
1,300,000
26
Kowloon Canton Railway
331,268 (More traffic).
27C Military Contribution
1,191,145 (Higher revenue
accounting change).
and
Duty on locally manufactur-
ed Liquor
!
Assessed Taxes (Rates)
Estate Duty
28
Miscellaneous Services
1,288,227 (Accounting changes).
"
Stamp Duty
1,265,705 1,250,000 1,450,000
5,997,110 6,212,000 6,800,000 1,220,854 1,250,000 1,250,000 2,324,949 2,300.000
2,400,000
200,000
588,000
―
100,000
29
Charitable Services
245,555 (Relief of Refugees).
37
Water Excess Supply and
Meter Rents
31
Pensions
206,392 (Underestimated).
Post Office
2,315,668 2,096,000 2,100,000 2,918,020 2.927,000 3,138,000
4,000
211,000
51
33
Public Works Recurrent
210,968 (Typhoon damage).
34
Public Works Extraordinary
622,052 (Construction of refugee camps & acquisition of property).
Kowloon-Canton Railway Land Sales
(Decrease
1,782,288 1,784,000
1,199,510 1,589,704*
982,790
2,170,000*
801,210)
580,296
Most of the other Heads showed small savings.
4. The net result was a deficit of $440,043, reducing the surplus of assets over liabilities to $13,562,235 at the 31st December, 1938.
Revenue.
B. ANTICIPATED RESULTS OF 1939.
5. The revised estimate of revenue is $40,475,248, an excess of $4,377,923 over the original estimate of $30,097,325,* and of $3,739,393 over the actual revenue of 1938. Actual revenue (approximate) up to 31st August was 17.4% more than the proportionate amount of the estimate, based on normal seasonal distribution. The increase is principally due to the continued presence in the Colony of large numbers of persons, the majority of them self-supporting, who have taken refuge here from the disturbances in China; to the diversion to the Colony of manufacturing and other activities formerly carried on in Shanghai and other cities affected by the hostilities; and to the maintenance of the Colony's total trade at a level not much lower than that prevailing in 1938, in spite of the interruption of trade with near South China ports. This increase in population and economic activity directly or indirectly affects most heads of revenue, especially liquor, tobacco and petrol duties, rates, Post Office revenue and receipts from royalties payable by transport companies. Details of the more important items are set out in Table II.
·
Including $839,704 transferred from Government House and City Development Fund.
Expenditure.
* Including $839,704 transferred from Government House and City Development Fund.
6. The repercussions in the Colony of the situation in China have on the other hand caused further increases in expenditure and there have been other additional charges, particularly for defence. The Colony has had to maintain thousands of refugees while the hospitals have had many more patients to care for, the numbers being still further swollen by epidemics of smallpox and cholera. Air Raid Pre- cautions have called for expenditure, as foreshadowed last year, several times the amount provided in the Estimates. Up to the 14th September supplementary votes totalling $5,061,237 had been approved by the Finance Committee, of these $1,515,026 were for Air Raid Precautions, and $673,800 for Charitable Services.
Further additional expenditure was authorized by the Secretary of State and Legislative Council early in the year, when it became apparent that the financial position would be easier than had been feared when the Estimates for 1939 were approved, to provide for certain public works which had been cut out during the consideration of the Estimates in Council. Supplementary votes on account of these works amounted to $1,478,109,
The larger population and continued disturbed conditions have resulted in many minor excesses in the votes of other Departments and the total revised estimate of expenditure is $40,409,957, i.e. $2,652,734 in excess of the approved estimate. Table III shows the more important variations in individual Heads.
N.B. The revised estimates of expenditure were prepared before the outbreak of war with Germany and no account is taken of extra expenses which may be occasioned by that.
11 x
Page 370Page 371