Appendix A (1).
REPORT ON THE FINANCES FOR THE YEAR 1919.
REVENUE.
The total revenue for the year amounted to $16,524,975 being $359,240 less than the estimate and $2,140,273 less than the revenue in 1918. Compared with that year there were decreases under the heads Licences and Miscellaneous Receipts, the former head showing a drop of $2,335,655. All other heads showed increases.
2. The principal sub-heads showing excess over the estimate are as follows:
(a) Assessed Taxes, ... $41,283
(b) Kowloon West Ferry Licences, ... 108,900
(c) Stamps, 101,156
(d) Tobacco Duties, 118,906
(e) China Companies Fees, 43,992
(f) Postage, 40,057
(g) Land Sales, ... 63,960
The increases are due (a) to new assessment, (b) to new item of revenue, (c) to more Probate Duty, (d) to increased sales, (e) to new flotations, (f) to increase of business, and (g) to more lands being disposed of.
3. The principal deficits compared with the Estimates were :-
(a) Special War Rate, ... $548,287
(b) Opium Monopoly, ... 696,965
Of these, (a) was due to the abolition of the tax at the half-year and (b) to decreased sales.
EXPENDITURE.
4. The total expenditure brought to account amounted to $17,915,925 being $3,238,029 more than the estimate, and $1,663,753 more than the expenditure in 1918.
Compared with the estimates there were savings under all heads except six.
Miscellaneous expenditure exceeded the estimate by $3,821,704 mainly on account of losses under the rice-control scheme. Loss on exchange accounted for a further $786,665 under the same head and Public Works Recurrent for $120,510.
Decrease in Pensions ($31,490), Public Debt ($77,119), and in nearly all Departments were chiefly due to the rising exchange