-3-
General Revenue Balance at 31. 3.49.
Estimated Surplus 1949/50...
Estimated Expenditure 1950/51.. $199,051,037
Estimated Revenue 1950/51...
191,979,480
Estimated Deficit 1950/51.....
.$72,143,683
•
57,973,674
$130,117,357
7,071,557
Total Estimated Surplus to be carried forward to 1951/52...
$123,045,800
Part II. MAIN ASPECTS OF THE 1950/51 BUDGET.
REVENUE.
The estimates of revenue are based on the revised estimates for 1949/50, but due regard has of course been paid to the possible effects of the disturbed political conditions in the Far East on certain items, and the fact that the windfalls of the present year are unlikely to be repeated. Generally speaking the estimates have been framed on a conservative though not on a pessimistic basis.
With conditions changing so rapidly, it is an even more difficult task than usual to estimate probable revenue for the coming year. There are so many factors which could alter the outlook completely. The question of probable future revenue from the Airport provides a good example of the sort of difficulty which has been encountered. Traffic at Kai Tak has dropped from 3,188 machines in August, 1949 to 503 in January, 1950, and future prospects are still very obscure.
Although Heads of Departments were urged to keep their departmental expenditure as low as possible, it has not proved practicable to balance the budget on the existing basis of taxation. It is not considered safe to count on a revenue of more than $191,979,480 which leaves a deficit of $7,071,557 which may be further increased by additional expenditure approved in Select Committee.
This revenue figure includes a sum of $250,000 in respect of a new tax on electric signs, draft by-laws in respect of which are now under the consideration of the Urban Council. The proposal is to license neon and other electric signs. Up to 20 square foot the fee will be $100 per annum. Above this size a further fee of $100 for each additional 10 square feet will become due.
The present deficit of just over $7 million may be further increased before the end of the year if supplementary votes become necessary in respect of two liabilities which are at present indeterminate. In the first place, it is just possible that work can be cominoncod before the end of the year on the reclamation which will be necessary to provide a concourse for the new forry piers, which are an essential feature of the proposed improvement to the ferry service. The second possible commitment is in respect of the Colony's contribution towards the cost of reinforcing the garrison. This matter is still the subject of negotiation, but in the meantime substantial amounts in respect of work carried out
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