5
Estimated Expenditure 860,642,715
Estimated Revenue
Estimated Deficit
$56,786,000
$3,856,715
This will mean that the Estimated General Revenue balance of the Colony at the 31st March 1942 will be $13,356,955, instead of $9,659,894, which is a good deal safer position than the Estimat.es as originally presented shoved.
Local Works and Public Works.
The 1934 $24,000,000 loan has now been fully issued by the issue of bonds to a nominal value of $11,790,000 in 1940. The raising of this 1940 loan made it possible to repay to Surplus Funds the amount previously advanced on this account. Further advances from Surplus Funds on account of a new loan were estimated to be reaching nearly $4,000,000 by 31st March, 1941. Another $500,000 is estimated for in 1941/42 in anticipation of this loan which will be confined to the continuation and completion of waterworks already authorised. The Funded Debt of the Colony on the 31st March 1941 is estimated at $27,268,000.
Turning to the details of Revenue for the coming year, attention should be drawn to Mr. Butters ' statement on the working of the war taxation in its first year.
It is clear that further taxation is necessary and that the working of the Ordinance as passed has not been entirely satisfactory. Mr. Butters drew particular attention to the yield from corporation and business profits which was estimated to bring in $3,000,000, but in fact is thought likely to yield nearly $6,500,000, of which not less than $5,500,000 were in respect of corporation profits. This means that business profits yielded only some $900,000, a figure described as disappointingly small. The War Revenue Committee has been reconstituted to re- examine the principles on which war taxation is based in the light of actual receipts and the change in the Colony's financial position since their earlier meetings.
Expenditure.
T
For the coming year this has been based on the principle that defence must come first, but that in the present financial position of the Colony social services should be advanced as far as circumstances permit.
I have the following comments on the
separate heads.
Head 4. Botanical and Forestry Dept. It will be noticed that this Head is for the first time split into two parts, Botanical and Forestry on the one hand, and agriculture on the other. This is a move towards the position envisaged by Mr. Flippance (see 54066/40). Sub-heads 7 and 19 show greatly increased expenditure on forestry protection caused by the shortage of firewood in the Colony. In addition to the protective measures taken under this Head, the Government arranged for investigation of the possibilities of supply from Borneo by Dr. Herklots,
and have themselves imported a considerable quantity with a view to breaking the profiteering rings.
The
provision