CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 187

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areas in South East Asia where the control of the local Governments had not been fully restored, and that directly the customs services in these areas were functioning normally again, exporters would be able to oxport cx bond. For this reason, tobacco duty was estimated at $25,000,000, which allowed for a drop in receipts of $5,000,000. Unfortunately, however, at the time when this purely temporary benefit to our revenue ceased, other factors arose which caused a further drop in receipts from tobacco duty, and it now appears that collections will only just top the $17,000,000 mark.

The revised expenditure figure is a little less than $9,750,000 over the estimate. This excess is mainly due to the payments which were approved towards the end of the financial year 1947-48 to Government employees who remained in the Colony during the occupation, and who were not interned. It was hoped to complete these payments before the 31st March, 1948, but this unfortunately proved to be impossible and it became necessary to issue a Special Warrant for $9,000,000 during the first quarter of 1948-49. Morcover, in spite of every effort, the necessary adjustments rosulting from the awards of the Salarics Commission with retrospective effect to the 1st January, 1947 could not bo completed by the 31st March, 1948, and it therefore became necessary to provide supplementary provision during 1948-49 amounting to $8,600,000. Sums of $600,000 representing pensions and $520,000 representing pay and allowancos to the local volunteer forces, which had remained in Suspense, were charged to expenditure, and a further Special Warrant for $100,000 was issued in respect of an increase in the Domobilisation Clothing Allowance from $450 to $600. This heavy carry-over of expenditure from the previous year was fortunately offset by savings under other heads, including a considerable saving under Public Works Extraordinary, as it did not provo possible to complete the full programme during the year. The nott excess over the estimate thus only amounted to $9,750,000.

The estimated general revenue balance to be carried forward is as follows :-

General Revenue balance at 31.3.48. Estimated Surplus 1948-19..

•

$37,063,396 24,000,000

180,019,370

Estimated Revenue 1949-50..

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Estimated Expenditure 1949-50...... 179,586,970

Estimated Surplus 1949-50..

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Total Estimated Surplus to be carried forward to 1950-51..

432,400

$61,495,796

PART II MAIN ASPECTS OF THE 1949-50 BUDGET.

REVENUE.

The estimates of revenue are based on the revised estimates for 1948-49. In view of the disturbed