;
4
Exact comparison with last year's Estimates
is rendered difficult by the fact that last year's were for a period of 15 months and the current Estimates for the normal 12 months period. The general trend of the position can, therefore, best be judged from the General Revenue Balance. It Hill be seen from the tables un page 5 01
the Estimator tirat it is estimated that on the 31st March 1942 this will be nearly $4,000,000 less than at the end of the last financial
year.
As regards the period covered by the 1940/41 Estimates, Revenue came in at a figure of some $16,000,000 over the Original Estimate. Over $9,000,000 of this was accounted for by War Taxation imposed after the passing of the Estimates, and increases in Ordinary Revenue were also caused by the raising of the duties on cash sweeps, postage rates, petrol duties etc. with the object of meeting the excess in war expenditure over the yield of war revenue. The yield from opium was also higher owing to the increase in price which had been approved by the S. of S. (see 55006/2/40). The increase in population in Hong Kong played its part keeping up revenue.
Generally
Expenditure reached a figure of some $15,000,000 above the Original Estimate. Increased expenditure on charity to meet the difficulties caused by the influx of refugees, the increased cost of public works, as well as increased defence preparations, accounted for this rise. Under the latter head attention must be .drawn to the provision of $4,500,000 for civil defence preparations, and a slightly lower sum for the Office of the Food Controller, in addition to over $3,000,000 which came in cash gifts to H.M.G.
On the year there was a small surplus of $122,500, but Mr. Butters pointed out in his address to the Leg. Co.Kwit must be remembered that the real reserves of the Colony have largely a paper existence, and it could not be suggested that the Government had an adequate hump on which to draw to meet any deficit in respect of the future.
This was reflected in the revision of the Estimates for the current year, which took place in their passage through the Leg. Co. They are based generally on the assumption that the economic activity of the Colony would be maintained in the coming year at a level not far short of its present. This is a more sanguine outlook than that adopted by the Malayan Administrations in preparing their budgets, but with the present political situation in the Far East prophecy is practically impossible. It might be noted that the press in Hong Kong has hinted that spending would be decreased in the coming year owing to high taxation and the effects of evacuation. the Leg. Co. provision was made for new duties on liquis hydrocarbon oils and tobacco, the result of which was to increase the Estimated Revenue by nearly $2,000,000. Expenditure was also cut down by approximately the same sum, and the Estimated Deficit for the year accordingly reduced to something under $4,000,000. The exact position can be seen from the table below:-
In
Estimated