374
375
22. Assessed taxes have been estimated at $6,300,000. This is $400,000 below the estimate for 1934, and is due to decreased valuation and to the greater number of
vacant tenements.
23. Bets and Sweeps Tax and Entertainment Tax show reductions of $60,000 and $30,000 as compared with the 1934 Estimates, as it is not anticipated that the receipts from these sources will be maintained owing to the depression. Stamp Duties are also reduced by $100,000 for the same reason.
24. Water excess and meter rents will not bring in quite so much in 1935, as a 15% rebate has been granted taking effect from 1st September, 1934.
25. Head No. 4, Fees of Court &c., has been reduced from $2,266,250 to $2,189,250. The difference is accounted by various small increases and decreases but a reduction of $20,000 is shewn under Public School Fees owing to fewer pupils, $18,000 less is estimated from Water Service, and owing to higher exchange the contributions in respect of the W. & O. Peusions scheme are put at $13,000 less than the 1934 estimate.
26. The receipts under Head 5, Post Office, also show a reduction both in respect of radio telegraphy and of postages. The former is estimated at $630,000 and the latter at $1,220,000, compared with $720,000 and $1,300,000 respective- ly for 1934.
27. The Kowloon Canton Railway is estimated to bring in $111,900 more than in 1934, in spite of the fact that the proportion of receipts on through running between the British and Chinese sections has been altered from 35 and 65 to 28 and 72. The increase is ascribed to greatly increased passenger traffic and haulage receipts on the mid-day expresses also to the continued improvement in foreign goods traffic.
28. Head No. 7, Rent of Government Property, continues to expand yearly, the estimate being $138,000 more than in 1934. The total receipts are now shewn as $1,683,000 and may be compared with $1,263,584 in 1929.
29. Head 8, Interest, has been increased by $100,000 over the 1934 estimate as, owing to loan funds, more monies are available for short term investments.
of
30. Head 9, Miscellaneous Receipts, includes an extraordinary item $975,410. This sum represents 20% deducted from certain amounts credited during the last few years in respect of exchange transactions due to the reduced sterling value of the dollar. The question as to whether these sums were really assessable to Military Contribution has been the subject of much correspondence between this Colony, the Colonial Office and War Office. It has now been finally decided that Military Contribution is not assessable and consequently the sum of $975,410 is released and may be written back to Revenue.
31. The receipts from Land Sales are estimated at $600,000 against an estimate of $1,200,000 for 1934. In the revised estimates for 1934 a sum of $590,000 only has been allowed for and it is somewhat doubtful whether this will be attained.
32. Expenditure is estimated in 1935 at a total of $32,476,102 as under
Ordinary Expenditure
Extraordinary Expenditure
Naval Arsenal and Kellet Island final instalment
.$28,976,652 2,999,450
500,000
$32,476,102
The following is a summary of the estimated Revenue and Expenditure for 1935.
Revenue.
Ordinary Land Sales
$29,985,650 600,000
$30,585,650
Expenditure.
Ordinary Extraordinary
*$28,976,652 2,999,450
$31,976,102
This shows a deficit on the year's working of $1,390,452 to which a further $500,000 on account of the Naval Arsenal has to be met from Surplus Balances. The total estimated deficit for the year is, therefore, $1,890,452. There will, however, be considerable under-expenditure if exchange is maintained at its present level throughout the year.
33. On the basis of the foregoing figures the position at the close of the year 1935 is arrived at as under
Actual Excess as at 1/1/34
Revised Estimate of Revenue 1934
Revised Estimate of Expenditure 1934
Estimated Excess at 31/12/34.
Estimated Revenue 1935
Estimated Expenditure 1935
13,823,625 29,670,634
43,494 269
30,893,000
12,601,250
*30,585,650
43,186,909
32,476,102
635
Anticipated Excess of Assets over Liabilities at 31/12/35... $10.710.807
34. With the present condition of affairs in Hong Kong and the unsettled business outlook, it is very difficult to forecast the future. The revenue may not be maintained and the sterling dollar exchange may drop. If this happens Government will immediately take in hand suitable reductions in expenditure. This is the worst side of the picture. Conditions may change for the better in which case the receipts from Land Sales, Rates and Import Duties would show some improvement. If this is the case the surplus at the end of the year should not fall below $11,000,000.
Loan Works.
35. Surplus balances have been drawn on in anticipation of a future loan and on 30th June, 1934, the total amount advanced was as under:—
Shing Mun Valley Scheme, 1st Section Aerodrome
Aberdeen Valley Water Scheme
Shing Mun Valley Scheme, 2nd Section
Preliminary Works
Filters
2nd Cross Harbour Pipe Gorge Dam
Vehicular Ferry
Tytam Tuk Catchwaters
New Gaol at Stanley
636,766
20,486 2,541,097
36.719
120,045
4,210
2,526.155
1,782,824
330,129
342,812
Air Port & Sea Plane Slipway
81,024
8,422,267
Anticipated Expenditure during the 6 months ending 31/12/34
5,996,455
$14,418.722
and for purposes of conversion the dollar has been taken at 1s. 4d. throughout.
(NOTE:--When the year's accounts are closed it will probably be found that the
figure of $5,996,455 given for "Anticipated Expenditure" is too high).
Mestate
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