CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 186

Enclosure 2.

MEMORANDUM ON THE ESTIMATES FOR TH FINANCIAL YEAR 1949/50.

PART I. - PRESENT FINANCIAL POSITION.

Financial Year 1947-48.

184

The Accountant-General's report for 1947-48 has just been issued and gives details of the financial position on the 31st March, 1948. The actual revenue

for the year in question amounted to $164,298,310, being $54,458,560 in excess of the estimate. The expenditure figure was $127,701,174 which was $17,914,841 in excess of the estimate. The surplus on the year's working therefore amounted to $36,597,136. All heads of revenue showed an excess over the estimato which was deliberatdy conservative, as it seemed unwisc at the time it was framcd, in view of the unsettled conditions in the Far East, to count too much on a

continued rapid expansion in the trade of the Colony. The excess of cxpenditure over the estimate was mainly due to the financial adjustment with His Majesty's Government.

The general revenue balance carried forward to 1948-49 was $37,063,396 made up as follows :-

General revenue balance at 31.3.47...... ..$ 487,435 Surplus 1947-48.

• •

Loss depreciation of investments.

36,597,136

37,084,571

21,175

$37,063,396.

Financial Year 1948-49.

The actual revenue and expenditure for the financial year just ending will not of course be knowi for some time, but the revised estimate of revenus $184,000,000 and of expenditure $160,000,000. thus anticipated that there will be a surplus $24,000,000.

The revised revenue figure is approximate y $32,500,000 in excess of the approved estimate. hen the estimates were prepared there were some indications of a falling off of trade, and due allowance was mado for this. Fortunately, however, this expected drop in trado did not matorialise except in regard to our trade with South China, which showed a further general decline. In spite of this, the total value of imports and exports reached a record figure and this was reflected in revenue collections. All the main heads, with the exception of Head 1, "Duties", are expected to exceed the estimates, and this will more than offset the serious drop in receipts from tobacco autics.

It was realised that an appreciable amount of tobacco from duty paid stocks was being exported to