CO129-597-1 Estimates 1948 15-11-1946 - 12-6-1948 — Page 24

Government which formed the subject of your

despatch No.292. In these circumstances,

whilst the probable financial outturn for

the year is gratifying and more favourable

than was originally estimated, you will doubtless

keep under examination all possible measures

designed to increase revenue including increasing

the standard rate of taxation under the

Earnings and Profits tax, so that revenue may

suffice, not only to meet the inevitable

increase in certain, items of the Colony's

expenditure such as salaries, but also a

certain amount of the special expenditure.

-

Moreover, as I have already pointed out in my

telegram No.. the Colony is experiencing

great commercial prosperity, an increase in

taxation can be borne without hardship.

Considerable surpluses should thus be budgetted

for in order that liabilities otherwise

chargeable to loan funds can be met from revenue

thus avoiding postponement in meeting the

liabilities until a time when the Colony may be

in a less prosperous state. Until the

liabilities are met, the Colony will not be

able to build up any reserve against less

prosperous times; and I should be glad to

learn what steps you consider can be taken to

increase revenue with this end in view.

3. It is observed that provision is

made under Head 20 Item 26 for $1,500,000 for

an initial grant to the Municipality, but it

does not appear that any expenditure will be

incurred

X

THE GAM

A