A. 5-
A.
REPORT ON THE ACCOUNTS FOR THE YEAR 1938.
1. Expenditure for the year amounted to $37,175,897 and the Revenue totalled $36,735,854 resulting in a deficit on the year's working of $440,043. The revenue and expenditure for the past ten years is charted in a graph appended to this Report as Financial Return No. 1.
2. The original estimates provided for a total expenditure of $33,379,549 against revenue expected to realize $30,254,920, forecasting a deficit of $3,124,629 for the year under review.
3. The accumulated surplus on 31st December, 1938, was reduced from $14,002,278 to $13,562,234 as shown in the Statement of Assets and Liabilities attached hereto as Financial Return No. 2.
The statement is supported by four appendices A, B, C, and D, which are published for the first time in accordance with changes in accounting procedure directed by the Secretary of State.
Revenue. The actual revenue collected during 1938 was $6,480,935 in excess of the estimate. Of this sum $2,285,121 was in respect of Head 1, Duties, and largely represents the increased consumption of tobacco and liquor consequent on the abnormal increase in population brought about by conditions in China. The decline in shipping was reflected in the fall in Head 2, Port and Harbour Dues, which failed to reach the estimate by $122,460. Head 3, Licences and Internal Revenue, produced $1,094,120 more than was expected. The chief items showing excesses were Water Excess Supply, Stamp Duties, Betting and Entertainment Taxes.
Under Head 4, Fees of Court, etc., a net increase of $172,068 was recorded, largely due to increased sales of Sand, Medical Treatment, and Air Services Fees. Notable decreases were in Companies Fees as a result of the situation in Shanghai and in Medical Fees for the Examination of Emigrants consequent on the decline in emigration. A phenomenal rise of $1,015,465 in postage is shown in Head 5, Post Office, and is explained by an all-round increase in postal services but particularly the introduction of the Empire "all up" mail. The revenue from Wireless Telegraphy was $538,098 below the estimate on account of the transfer of Commercial Services to Cable and Wireless, Ltd. The net increase in Post Office revenue was $480,979.
An increase under Head 6, Kowloon-Canton Railway, of $737,388 was chiefly due to a heavier freight business despite the cessation of through running for the last three months of the year. Head 7, Rent of Government Property, was $264,165 in excess of estimates. More buildings, including some new markets, were rented and certain areas of land were rented for open storage.
The estimated revenue from Head 9, Miscellaneous Receipts, was more than doubled as a result of the abnormal conditions resulting in large royalty payments by the transportation companies. The sale of the Rescue Tug "Kau Sing" and of the commercial wireless equipment produced considerable sums and the transfer to Revenue of the Trade Loan Reserve Fund contributed largely to a net increase of $716,292. Head 10, Land Sales, brought an additional sum of $844,511 to revenue due to the demand for building sites for housing and industrial projects.
5. Expenditure. The expenditure for the year was $3,796,349 greater than the amount provided for in the estimates.
Personal Emoluments amounted to $13,384,078 being $583,223 less than the estimated cost of $13,967,301,
A. 5-
A.
REPORT ON THE ACCOUNTS FOR THE YEAR 1938.
1. Expenditure for the year amounted to $37,175,897 and the Revenue totalled $36,735,854 resulting in a deficit on the year's working of $440,043. The revenue and expenditure for the past ten years is charted in a graph appended to this Report as Financial Return No. 1.
2. The original estimates provided for a total expenditure of $33,379,549 against revenue expected to realize $30,254,920, forecasting a deficit of $3,124,629 for the year under review.
3. The accumulated surplus on 31st December, 1938, was reduced from $14,002,278 to $13,562,234 as shown in the Statement of Assets and Liabilities attached hereto as Financial Return No. 2.
The statement is supported by four appendices A, B, C, and D, which are published for the first time in accordance with changes in accounting procedure directed by the Secretary of State.
.*
Revenue. The actual revenue collected during 1938 was $6,480,935 in excess of the estimate. Of this sum $2,285,121 was in respect of Head 1, Duties, and largely represents the increased consumption of tobacco and liquor consequent on the abnormal increase in population brought about by conditions in China: The decline in shipping was reflected in the fall in Head 2, Port and Harbour Dues, which failed to reach the estimate by $122,460. Head 3, Licences and Internal Revenue, produced $1,094,120 more than was expected. The chief items showing excesses were Water Excess Supply, Stamp Duties, Betting and Entertainment Taxes.
Under Head 4, Fees of Court, etc., a net increase of $172,068 was recorded, largely due to increased sales of Sand, Medical Treatment, and Air Services Fees. Notable decreases were in Companies Fees as a result of the situation in Shanghai and in Medical Fees for the Examination of Emigrants consequent in the decline in emigration. A phenomenal rise of $1,015,465 in postage is shown in Head 5, Post Office, and is explained by an all round increase in postal services but particularly the introduction of the Empire "all up" mail. The revenue from Wireless Telegraphy was $538,098 below the estimate on account of the transfer of Commer- cial Services to Cable and Wireless, Ltd. The net increase in Post Office revenue was $480,979.
An increase under Head 6, Kowloon-Canton Railway, of $737,388 was chiefly due to a heavier freight business despite the cessation of through running for the last three months of the year. Head 7, Rent of Government Property, was $264,165 in excess of estimates. More buildings, including some new markets, were rented and certain areas of land were rented for open storage.
The estimated revenue from Head 9, Miscellaneous Receipts, was more than doubled as a result of the abnormal conditions resulting in large royalty payments by the transportation companies. The sale of the Rescue Tug "Kau Sing" and of the commercial wireless equipment produced considerable sums and the transfer to Revenue of the Trade Loan Reserve Fund contributed largely to a net increase of $716,292. Head 10, Land Sales, brought an additional sum of $844,511 to revenue due to the demand for building sites for housing and industrial projects.
5. Expenditure. The expenditure for the year was $3,796,349 greater than the amount provided for in the estimates.
Personal Emoluments amounted to $13,384,078 being $583,223 less than the estimated cost of $13,967,301,
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