CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 304

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HONG KONG.

Memorandum on the Financial Position,

1935, 1957 and 1938,

by

The FINANCIAL SECRETARY.

1986.

Revenue.

The revenue for 1936 was $30,042,983 as against the original estimate of $26,671,845 and the revised estimate of $28,415,970. The excess over the original estimate was $3,371,138 and over the revised estimate $1,627,013.

2. The receipts from duties exceeded the estimate by $1,593,672. Most of the increase came from imported liquor ($304,503 in excess of estimate) and tobacco ($1,266,519 in excess), the duties on these articles having been, increased as from 1st April, 1986. Duties on locally manufactured liquor, however, yielded only $940,262 against an estimate of $1,000,000.

3. Port and Harbour Dues showed an increase of $98,284 due to light dues being collected on the conventional dollar basis.

4. Licences and Internal Revenue showed a total excess over the estimate of $1,067,687. The principal items showing excesses were: Assessed Taxes (Rates) $176,158; Estate Duties $352,890 (accounted for by one large estate); Stamp Duties $236,943; Water Excess Supply $272,520; and Opium Monopoly $182,026. Licences generally showed a shortfall, receipts from Pawnbrokers Licences being $74,971 below the estimate and from Liquor Licences $56,524 below the estimate.

5. Post Office receipts were $268,885 in excess of the estimate, owing to increased rates and expansion of air mail services. The Kowloon Canton Railway receipts, however, fell short of the estimate by $77,531. Rent of Government Property and Interest practically came up to the estimate and Miscellaneous Receipts showed an excess of $389,878, due to non-recurrent items, i.e., the realization of sterling securities and large refunds of over-payments in previous years. Land Sales fell short of the estimate by $32,770 but exceeded those of 1935, by $24,274.

Expenditure.

6. The expenditure for the year amounted to $29,518,520, against an estimate of $29,598,148, showing a small saving of $82,628. The fall in the exchange value of the dollar (the average rate for 1936 was 1/3 against 1/11 in 1935 and a rate of 1/8d. assumed in the 1936 Estimates) would, however, have caused a large excess if drastic economies had not been enforced and a levy on salaries introduced as from 1st January, 1936. The only head showing a substantial excess over the estimate was Pensions, where the increase was $477,746, this was due to lower exchange, and there were smaller excesses, due to the same cause, on a number of other heads. Substantial savings were made under Public Works Recurrent $159,689 and Public Works Extraordinary $124,660,

7. The final figures were Revenue $30,042,983, Expenditure $29,513,520, Surplus on the year $529,463, bringing the tetal excess of Assets over Liabilities on the 31st December, 1936, to $12,917,132.

Public Debt.

8. The total debt at the 31st December, 1936, was $17,718,000, made up of $4,838,000 4% Conversion Loan, 1933, repayable in 1953, against which a sinking fund of £42,836 was held; and $12,880,000 33% Dollar Loan. 1984. The latter is the balance of the original sum borrowed, $14,000,000, which is being repaid by annual drawings at the rate of $560,000 per annum.

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