FINANCIAL REPORT FOR THE PERIOD FROM THE
1st MAY, 1946, TO THE 31st MARCH, 1947 (incorporating also transactions relating to the period 1.9.41 to 30.4.46).
The liberation of the Colony, after the end of the Pacific War, was followed by a period of British Military Administration and Civil Government was not resumed until the 1st May, 1946. This Report accordingly covers a period of eleven months from that date up to the 31st March, 1947.
REVENUE & EXPENDITURE TOTALS
HONG KONG.
AND SUB-HEADS AS COMPARED WITH THE ESTIMATES
Decrease.
Explanatory Remarks.
$
4,739,604.90
2. The following table shows the actual revenue and expenditure as compared with the sanctioned Estimates:-
Underestimated.
Increase (+)
Estimates
Actual
$
or
Decrease(-)
16,748.80
7,784.89
Overestimated.
Less demand.
Increased rates and more business.
$
Expenditure
Revenue
167,854,576 51,808,300
85,624,391 (a) 82,141,556
Deficit...
116,546,276
3,482,835
82,230,185 + 30,833,256
-113,063,441
24,482.69
NOTE: (a) Includes $2,000 charged direct to the General Revenue Balance in respect of the difference between the amount of certain 1941 investments which were recovered intact and the amounts provided to restore the Currency Note Security Funds which were appropriated by the enemy (see paragraph 26).
It will be seen that the revenue exceeded the estimate by $30,833,256 and expenditure was $82,230,185 less than estimated, owing to a subsequent decision to charge all rehabili- This resulted in tation expenditure to an Advance Account pending the raising of a loan. the anticipated deficit of $116,546,276 being reduced to $3,482,835 and the reasons for the improvement in the revenue, together with details of the rehabilitation expenditure actually charged to the Advance Account by the end of the year are given in later paragraphs.
GENERAL REVENUE BALANCE
3. The General Revenue Balance as recorded in the audited accounts of the London Accounts Office of the Hong Kong Government as at the 30th April, 1946, amounted to $3,970,270 and this balance was reduced by the deficit for 1946/47 to $487,485.
REVENUE
4. The actual revenue totalled $82,141,556 which was $30,833,256 more than estimated. When the Estimates were framed, little reliable information was available as to revenue prospects, and this factor, combined with the comparatively rapid economic recovery of the Colony, the big increase in population, the introduction of new revenue measures and increases in the charges payable under existing ones, accounts for the big
increase.
It may be noted that the total for the eleven months of 1946/47 was over $25,000,000 more than the estimated revenue for the full twelve months of 1941/42, despite the fact that the latter included $9,300,000 from the Taxes on Property, Profits and Salary, which were not re-introduced in 1946/47. The comparative increase in 1946/47 revenue over the estimate for 1941/42 was therefore more than $34,000,000.
5. A detailed comparison between estimated revenue and actual receipts is given in Appendix 8. There were increases under eight of the main heads and comparatively small decreases under the remaining three as follows:-
6. Head 1, Duties, brought in $34,196,087 or $15,996,087 more than the estimate, the major excess being one of over $13,000,000 from Tobacco, due to an increase in the rates of duty, re-stocking after the war, and the rise in the wealth and size of the community as a whole. Liquor Duties were also raised. The duty on Proprietary Medicines and Toilet Preparations, which was introduced in 1941, accounted for $3,425,546 or $1,425,546 more than estimated.
More travelling than anticipated.
do
-
12,589.39
Overestimated.
Underestimated.
Overestimated.
809,947.87
1,417.65
Road competition,
804.00
Overestimated.
68,048.26
892,756.67
5,656,844.26
More loading by coolies.
Insufficient equipment available.
More land rented.
More loading and unloading by coolies.
-
do
37 -
2
123