CO129-550-1 Estimates 1935 14-9-1934 - 15-9-1934 — Page 5

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The Colony is passing through a serious trade depression and a Commission has been appointed, and is now sitting, to enquire into the causes and effects of the depression and to make recommendations

for the improvement of trade.

Government revenue has fallen and is in

danger of falling further, but in view of the depressed condition of trade no attempt has been made to compensate for the reduction in revenue by increasing

taxation. On the other hand, it has not been possible to remit any of the existing taxes.

On account of the heavy programme of public

works extraordinary to which the Colony is committed

it has been necessary to budget for a substantial

deficit in 1935. The position is not so serious as

at first sight appears for four reasons: firstly, at

the beginning of 1934 the excess of assets over liabilities amounted to $13823,625 or nearly $4,000,000 more than the figure of $10,000,000 which is regarded as the minimum which should be maintained,

and, therefore, notwithstanding an estimated deficit in the current year of $1,200,000 and in 1935 of almost $2,000,000, the estimated excess at the end of 1934 amounts to $10,630,807 or some $631,000 more than the

minimum referred to above. Secondly, certain sources

of revenue which have not been accessible are likely pia of Enal 656) to become so e.g., the Arsenal Yard site, part of the

Victoria Gaol site, Kowloon Tsai Development and North

Point reclamation. Thirdly, the estimated deficit

is