Secretariat file 16/484.1/48..·

SAVINGRAM

To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date...

M

No. 1238

November, 1951..

CONFIDENTIAL

REGISTRAR'S OFFICE 1 5 NOV 1951 COLONIAL CRICE

(11)

1.

My savingram 952 of 17th August 1951.

Financial position and policy: Quarterly Summary.

The final accounts for the financial year 1950/51 are now available. Revenue amounted to $291,728,416.64 and expenditure to $251,684,523.57 with a resulting surplus for the year of $40,043,893.07. Adding this figure to the general revenue balance of $154,152,842.57 as at 31st March 1950 and allowing for an adjustment of $1,290,031.67 to cover depreciation on investments, the opening balance at the commencement of the current financial year was $192,906,703.97. At the same date loan expenditure had totalled $75,793,925.10 of which $25,793,925.10 was covered by advances pending the raising of a loan.

2.

Estimated revenue and expenditure for the first six months of the current financial year are as follows:-

3.

Revenue Expenditure

Surplus

$ 148,759,327 $96,193,280

* 52,566,047

Particulars of revenue recorded under the more important subheads are as follows:

Approved Estimates 1951/52

Proportionate Estimate for 1st half year

$6,700,000

Actual so far recorded for 1st half year

$ 8,352,360 18,878,263 11,568,091 15,866,905

Liquor duties

$ 13,400,000

Tobacco duties

25,000,000

12,500,000

Other duties

18,000,000

9,000,000

Rates

27,040,000

13,520,000

Stamp duties

11,500,000

5,750,000

6,373,100

Earnings and profits tax

44,000,000

22,000,000

26,988,229

Kowloon-Canton Railway

7,605,000

3,802,500

2,425,309

Post Office

14,100,000

7,050,000

6,306,123

Royalties

9,513,500

4,756,750

6,859,355

4.

Shortfalls persist under Post Office and Kowloon-Canton Railway receipts but these are more than covered by the excesses under other main heads of revenue. In the last quarter the weekly revenue returns fell below the proportional average estimate on five occasions and, if similar instances occur more frequently during the remaining six months, the excesses in other weeks will have to be large to maintain the present surplus of revenue over the accumulated average estimate.

5.

Expenditure is still trailing behind the proportional figure by about $20,000,000 largely due to slow disbursements on Public Works Non-Recurrent on which only $5,000,000 was spent compared with a proportional estimate of over $17,000,000. However some major projects are now under way and expenditure under this

/head is likely

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