CO129-525-3 Estimates 1931 and other financial papers 16-1-1930 - 1-9-1932 — Page 326

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HONG KONG LEGISLATIVE COUNCIL.

$1,818,307.78 represents the total supplementary appropriation required under each of the heads exceeded, no account being allowed of savings on other heads. When allowance for this is made the actual increase in the year's expenditure over the sum originally voted amounts to $1,372,919.

was,

The estimates for 1931 amounting to $29,787,855 were prepared on the basis of a 1s/4d dollar and a deficit of $2,300,000 was budgeted for. The opening rate of exchange for 1931 however, 1/0% and it was evident that if the rate continued at approximately 1s/- throughout 1931 the estimate would be very much exceeded. Indeed it was estimated that a further $1,838,000 would be required. The average rate of exchange for the first three quarters of the year 1st January to 30th September was just under 1s/-, but when England went off the gold standard on the 21st September the dollar began to rise and the average rate for the last quarter 1st October to 31st December was almost 1s/4d, to be precise, 1s/3.958d. Every effort, therefore, was made to restrict expenditure to services absolutely essential to the Administration and the result of these economical measures can be seen in the very large number of items shewn in the Detailed Statement of Expenditure in the Column headed "Decrease", Notwithstanding this, however, there have been several large increases on account of unforeseen expenditure. I mention the following. The actual market depreciation in sterling of sterling securities and the adjustment of their dollar value December, 1931, accounts for $530,947. Balance

on 31st Contribution in respect of 1930 paid, when the final figures for of Military the year are known, amounted to $148,308. Of the first instalment of $500,000 paid to the Admiralty for the surrender of the Naval Arsenal Yard and Kellet Island $263,741 was charged to expen- diture. $146,928 was spent on water meters in addition to the amount originally voted. Typhoons cost $90,835 more provided and the derailment and

than washout to embankment in April accounted for $51,110. These alone amount the Railway to $1,231,869 and when it is considered that the net excess is only $141,050 above that figure it can be seen, having regard to the low rate of exchange ruling during the first 9 months, how considerable the savings were.

As honourable members are aware the position in the early months of the year called for the greatest care and revision of taxation was imperative. Liquor and tobacco duties, opium prices and postal rates were raised. The duty on motor spirits was increased in September from 15 cents to 25 cents per gallon and increases and adjustments in Licences, Fees and other receipts to bring them more into line with the low valued dollar were effected. Revenue from direct taxation amounted to $21,592,905 of which the Assessed Tax (Rates) contributed $5,814,016.