74
5
6. The growth of the Colony's revenue since World War II is illustrated by the following figures.
1946/47
(11 months)
$82,141,556
1947/48
$164,298,310
1948/49
$194,933,955
1949/50
$264,250,543
The last figure is inclusive of a non-recurrent item of revenue being a free grant from His Majesty's Government of $16 millions. The other major items of revenue for 1949/50
were:
Earnings & Profits Tax $38,817,596; Tobacco Duty $35,449,009; Rates $19,286,843; Duty on Hydrocarbon Oils $13,186,477; Stamp Duties $12,818,815; Postage $12,066,219; Liquor Duties $9,917,948; Railway Revenue $7,678,671; Water Revenue $7,657,050; Entertainment Tax $7,423,641; Bets & Sweeps Tax $6,027,673 and Land Sales $4,786,502.
Further details showing the revenue figures under each sub- head compared with the estimated figures will be found in Appendix II.
EXPENDITURE
7. The total expenditure for the year was $182,121,726, a net increase on the estimate of $2,197,414. The gross increase, however, was $11,565,689, this figure being partially offset by savings amounting to $9,368,275. The main increases were Hong Kong Regiment $1,453,982, being mainly due to unexpected expenditure on clothing, equipment, arms and ammunition required to bring the Regiment up to the standard required for an infantry Battalion at the Higher Establish- ment; Pensions $627,902, due largely to improved benefits under the new pensions legislation and an increase in the number of Royal Warrant awards made resulting from the delayed effects of internment; Public Debt $3,502,544 on account of an increased contribution to the Sinking Fund in respect of the 34% Rehabilitation Loan partially offset by savings on interest provided for in the Estimates in respect of further issues of the loan which were not made; Registra- tion of Persons (Statistical Dept.) $575,215, being expenditure on registration which had not been foreseen and was not provided for in the Estimates; Stores Department $3,234,687 as a result of an unexpectedly large demand for sand which was reflected in increased revenue and the late arrival of large quantities of steel and water pipes which had been ordered and provided for in previous years; and Subventions $615,284 which excess was mainly due to new loans to 3 schools totalling
$1,000,000 and a grant of $250,000 to the General Officer Commanding in Chief's Fund partially offset by savings on other subventions that were not required.
8. As is often the case the principal saving occurred under the head Public Works Extraordinary and amounted to $1,992,645 being due mainly to certain works being postponed and other works not being completed for various reasons, often the late arrival of materials ordered through the Crown Agents. Substantial savings on other heads were Education Department $609,194 as a result of difficulties experienced in fitting a number of vacancies on the establishment; Marine Department $961,285 following on the exercise of much greater economy, retirements, staff changes, restricted mileage of Government launches and other factors; Medical Department $1,073,923 more than half of which was also due to recruiting difficulties and the balance as a result of non-arrival of materials and general economy in the use of stores and equip- ment; Prisons Department $574,591, again largely due to many staff vacancies remaining unfilled together with a reduction in cost of rations and the non-procurement of certain motor vehicles; Sanitary Department and Urban Council $683,590, the principal savings being on account of the non-completion of orders for nightsoil and refuse barges together with a large number of smaller savings for various reasons on other sub- heads; and Colonial Development & Welfare Schemes $1,272,377 due to the temporary deferment of three schemes totalling some $1.6 millions offset by expenditure ahead of schedule on one scheme and approved expenditure on a new scheme which had not been budgeted for.
9. Appendix III gives details of expenditure under each subhead of the approved Estimates showing excesses or savings and the reasons therefor. All excesses were, in accordance with Colonial Regulation No. 256, covered by Special Warrants, the relative warrant numbers being quoted in each case in the appendix. Expenditure was heaviest on the following main heads:
Excess +
or'
Actual Estimate Expenditure Savings $
$
Miscellaneous Services... 37,832,100 38,234,810 + 402,710 Public Works
Extraordinary Subventions
19,618,000 17,625,355 1,992,645 13,245,721 13,861,005 + 615,284
Public Works Recurrent 12,632,000 12,974,374 + 342,374
75