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2. The revenue for the year 1935 amounted to $28,430,550 being $2,155,100 less than estimated and $1,143,736 less than the revenue obtained in 1934.
3. Duties on imported liquor and tobacco were less than estimated as they are on a sterling basis and were reckoned on an exchange rate of $1-1/4 whereas the average rate throughout the year was over 1/11. Assessed Taxes fell short of the estimate by $169,609 due to vacant tenements, and large shortfalls were shown in the Opium Monopoly of $297,286 due to competition of illicit opium; in Stamp Duties of $132,349 owing to trade depression. Receipts from the Kowloon-Canton Railway were also $281,225 less than estimated owing to river boat competition and fewer local passengers to Shum Chun. Land Sales again were much below the estimate. Increases were shown under Water Excess and Meter Rents due to more metered services. China Companies Registrations were up by $51,576. Market fees also showed an increase of $45,440 as new markets were opened.
4. The expenditure for the year 1935 amounted to $28,291,636 being $4,264,466 less than estimated and $2,857,520 less than the expenditure in 1934.
5. Ordinary expenditure amounted to $25,030,568, Public Works Extraordinary to $2,801,919 and Naval Arsenal Yard & Kellet Island to $459,149. Large savings were made under Personal Emoluments when compared with estimates, provision being made for $12,701,789 but only $10,248,600 was expended. Under Other Charges savings were also effected the total provision being $4,632,853 against $3,730,038 expended.
6. Debt. The public debt of the Colony consists of two issues. The 4% Conversion Loan raised in 1933 amounting to $4,838,000, the Sinking Fund of which, established in 1934, amounted on 31st December, 1935, to £31,222.4.4. Secondly the 3½% Dollar Loan raised in July, 1934. Bonds to the amount of $14,000,000 were issued at 99% producing $13,860,000. This loan is redeemable by drawings at par in each of the twenty-five years commencing in 1935 at the annual rate of one twenty-fifth of such issue. During the year $560,000 was redeemed thus reducing the amount outstanding to $13,440,000. Ordinance No. 11 of 1934 governs this issue and authorises the Governor to borrow up to a total of $25,000,000. The total public debt of the Colony on 31st December, 1935, amounted to $18,278,000 equal to about 9 months' revenue as things are at present.