Enc.
2.
976
MEMORANDUM ON THE ESTIMATES FOR THE FINANCIAL YEAR 1951/52.
PART I.
Financial Year 1949/50.
PRESENT FINANCIAL POSITION.
The Accountant General's report for 1949/50 has just been issued and gives details of the financial position on the 31st March, 1950. The actual revenue for the year in question amounted to $264,250,543 being $84,099,173 in excess of the estimate. The expenditure figure was $182,121,726 which was $2,197,414 in excess of the estimate. The surplus on the year's working amounted to $82,128,817 but from this must be deducted a sum of $119,658 representing the net depreciation on investments to middle market value on the 31st March, 1950. This reduced the actual surplus for the year to $82,009,159.
All Heads of revenue showed an excess over the estimate which necessarily had to be prepared some months before the commencement of the financial year. At that time, the political out look was very uncertain and there seemed to be a possibility that trade with China might temporarily come to a standstill. In actual fact this did not eventuate, though the Amethyst incident and the crossing of the Yangtse by the People's Liberation Army gave rise to a feeling of apprehension. Confidence was soon restored, however, one of the factors in this being the strong reinforcement of the garrison, and in the latter part of the year trade rose to new levels. Moreover, a number of sources of revenue such as duties, entertainment tax, royalties from transport companies, bots and sweeps tax, restaurant meals tax, railway and postal receipts were increased to a greater or lesser extent by the influx of population into the Colony which occurred during the year.
The excess of expenditure over the estimate was largely due to a supplementary provision amounting to some $12 million for clothing and equipment for the Defence Force. This was necessary because of the late rendering of the accounts in respect of the initial equipment of the
Supplementary expenditure amounting to $1 million was also incurred on the registration of persons in connection with the issue of identity cards. This was not foreseen when the estimates for the year were approved.. There were of course other excesses which were offset by savings in other directions, the largest saving being under Public Works Non-Recurrent owing to certain items in the programme not being completed for various reasons.
The general revenue balance carried forward to 1950/51 was $154,152,842 made up as follows :-
General Revenue balance at 31.3.49...
Surplus 1949/50..
Less net depreciation on investments..
•
Total...
•
$72,143,683
82,128,817
$154,272,500
119,658
$154,152,842