CO129-615-3 Income tax 24-2-1948 - 12-8-1948 — Page 56

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5.

I foresee little possibility of situation arising whereby Colony would be forced to seek Grant-in-Aid to meet recurrent expenditure, This would be definitely unpopular, as it would be regarded as eacrificing Colony's independence to some degree, and I am sure that I can count on unofficial support for any measures necessary to maintain balanoeć budget. I should much prefer to defer any proposal for raising fresh revenue until I see result achieved by proposed review of departmental expenditure,

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Actual revenue for 1947/48 is now estimated at Hong Kong 150,146,224, against a revised expenditure figure of Hong Kong 120,071,359, thus giving an actual surplus of Hong Kong 30,000.000.

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It is not yet possible to give any definite figure regarding S. T. and I. profits as this has not been taken into account in revenue estimates for 1948/49,

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Treasury

Mr. D.R. Serpell, O.B.En