Extract from "Far Eastern Economic Review" April 6th, page 440.
HONGKONG'S BUDGET FOR 1950/51.
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The finally estimated expenditure for the fiscal year April 1950 to March 1951 amounts to $200.8 million ($1.8 m. more than the first estimate provided). The budget passed Legislative Council on March 29. Against the actual expenditure of the fiscal years 1947/48 ($127.7 m.) and 1948/49 (8159.9 m.) the current estimate is higher by 57.2% and 25.6% respectively; against the revised estimate for 1949/50 ($179.9 m.) the current estimate is higher by 11.6%. (In our issue of March 16. pp. 331/2 the Public Finances of Hongkong were reviewed and the schedule of expenditure was published).
The expenditure of $200.8 m. for the current fiscal year has been charged upon the revenue and other funds of the Colony; the estimate of revenue for 1950/51 remains at $191.8 m. thus a deficit of $8.9 m. is estimated.
The proposal by Government to raise standard rate of income tax has been shelved for the time being. Opposition to this pro- posed increase was voiced all over the Colony and Government has taken note of this and not pressed for a division in Legislative Council (such a division in Council with an official majority voting as a bloc would have been interpreted here and abroad as an undemocratic move). Confidence in Government as a benevolent institution has, as a consequence of the forbearance of Government, returned and good will among the public has been fostered.
The deficit, it is hoped, may be covered, and possibly a surplus may eventually be recorded, by (1) higher revenue than estimated, (2) the imposition of a business registration fee, (3) other indirect taxation (both increases in rates or new impositions). (A head tax or persons' registration tax should have been introduced long ago while gold sales contracts should also be subjected to the payment of stamp duty).
In view of the fact that an increase in the standard rate
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