CO129-545-1 Estimates 1934 4-10-1933 - 17-4-1934 — Page 160

not.

Enclosure no 4.

бисичии

HONG KONG.

Memorandum on the Financial Position.

1932, 1933 & 1934.

1932.

1. The Revenue for the year amounted to $33,549,716 as against the original estimate of $33,991,510 while the revised estimate was $33,152,674. It will be seen therefore that while the revenue for 1932 fell short of the original estimate by $441,794, it exceeded the revised estimate by $397,042.

2. Included in the total revenue for the year of $33,549,716 were two abnormal credits, viz., $222,873 and $238,794. The first was a re-imbursement from loan ac- count in respect of the salaries of officers employed on loan works as explained in the annual report on the finances for the year 1932. The second item represented the appreciation which had taken place in the market value of the Colony's sterling funds invested in London.

3. With the exception of "Duties", "Post Office" and "Land Sales" each Head of Revenue showed an increase over the Estimates for 1932. In regard to Duties the falling off was anticipated as liquor and tobacco duties were reckoned on the basis of $1.00=1s. whereas the average rate of exchange throughout 1932 was over 1s. 3d. The decrease in Post Office Revenue was due mainly to the heavy decline in parcel post business particularly to Great Britain and China. Less activity in the property market caused a decline in sales of Crown Land which produced a sum $379,341 short of the estimate.

4. The Opium Monopoly was estimated to yield $3,000,000; actually, the Re- venue collected was $675,774 less. Stamp Duties were under the estimate by $280,799, mainly due to stagnation in the stock market.

5. The principal increases were as follows:-Liquor Licences $114,707 due to increased rates from 1st January 1932; Vehicles Licences $69,635 due to an increase in fees and in the number of licensed drivers; Assessed Taxes $132,065 due to build- ing development. Three large estates accounted for almost 5 lacs of the increase shown under Estate Duty and the institution of universal meterage and general building deve- lopment were responsible for $298,439 increased in Water Excess and Meter Rents. The Kowloon Canton Railway earnings exceeded the estimate by $176,296.

A con- siderable increase of $163,252 was shown under the head of Revenue "Interest" be- cause the interest due in 1931 on the Joint Colonial Fund had been temporarily with- held and was not paid until 1932. Out of $191,902 increase in other Miscellaneous Receipts $179,551 was due to the item Profit on Exchange.

6. The expenditure for the year amounted to $32,050,283 as against an estimate of $34,981,661, a decrease of $2,931,378. As the estimates were based on $1=1s. the savings brought about by the improved exchange position were so considerable that Council increased the vote for Public Works by $746,950 on 30th June. Even so the total revenue for the year exceeded the expenditure by $1,499,433 and 1933 opens with a surplus of assets of $12,847,062 instead of $11,812,803, as estimated.

1933.

7. The Revenue for the year was estimated at $34,002,575 an increase of $11,065 over the estimates for 1932. The Revised Estimate for 1933 however is not expected to yield more than $33,027,000 and would have been still less had not two "wind falls" relieved the situation. The sale of half the City Hall site realised $1,250,000 and one large estate produced over $1,800,000 in Death Duties.

193

Page 160Page 161