AnnualReport-1882 — Page 3

NOTE OF HIS EXCELLENCY THE OFFICER ADMINISTERING THE GOVERNMENT ON THE ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 1883

1

In laying before the Council the Estimates of Revenue and Expenditure for the year 1883, I think it will be interesting to Honourable Members, if I give at the same time some information about the financial position of the Colony.

2. The balance of Colonial Assets on 1st January last was $663,710.24, and that of the Special Fund Assets at the same period was $379,910.00, making a total of $1,043,620.24

3. The Secretary of State, in recently conveying his decision that the construction of the Tytam Water Works should be at once undertaken, has expressed the opinion that as these works will largely benefit the Chinese Community, the Special Fund, so far as it will go, might be very properly applied to this purpose. I propose, therefore, with His Lordship's sanction, to close the Special Fund Account at the end of the present year, and to transfer the balance to general account. The Tytam Water Works, as well as the expenditure for completion of the Breakwater at Causeway Bay, will then be debited against balances. It will be seen that in the present Estimates these Public Works are only referred to in a note, and also that the contribution to Police Expenditure from interest produced by the Special Fund, as well as the provision for refund of loans from this Fund for the construction of the Praya and Lighthouses, have been omitted.

4. In a despatch which was recently laid before this Council, the Secretary of State observed that premia from purchases of land, which are receipts for alienation of Colonial property, ought to be regarded in the light of Capital rather than of Annual Revenue. I have accordingly omitted this item from the Estimates of Revenue for 1883. As it may be interesting to know how much these premia have yielded, I have had a statement made up, from which it appears that the total sum received since they were first levied in 1851 is $1,069,504.00. This sum is within $25,000.00 of the total balance of Assets to the Credit of the Colony at the commencement of the year. It may be considered, therefore, that the Receipts from the Establishment of the Colony, up to the present time, including both Imperial Grants and Special Fund, but excluding these premia, about balance the expenditure during the same period. During the early period after the occupation, the Expenditure was greatly in excess of Revenue, but in the course of the last ten years the excess of Revenue over Expenditure, excluding premia on land sales, has amounted to $432,386.00. In the two years 1874 and 1876, the Expenditure exceeded Revenue by $100,000.00; the $432,386.00 represents, therefore, the nett excess after deducting this sum. The progress which the Colony has made, as indicated by these figures, is most satisfactory.

REVENUE

I have estimated the Revenue for 1883 at $1,115,665.00. In comparing this figure with the Estimates for 1881, which were $1,324,455.00, and with the Estimates for the present year, which are $1,048,860.00, it must be remembered that premia on land sales and the contribution from Special Fund for Police have, as already explained, been omitted this year. The Grant-in-Aid of the Lock Hospital by the Admiralty has also been omitted, because a separate account is now kept of all other receipts and Expenditure on account of Ordinance 10 of 1867.