CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 124

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respect of one large estate. Owing to the continued high rate of building activity and the modification of the control over rents of business premises, the yield from rates was also higher than was anticipated, and it would appear that the estimate will be exceeded by nearly $6 million. Revenue from postal and railway services, and from the bets and sweeps tax remained high, and entertainment tax is expected to produce a particularly high yield.

This

As has been explained in an earlier paragraph, the revised expenditure figure of $250,448,999 includes a figure of $50 million in respect of loan advances charged off to expenditure. If this operation had not been undertaken the revised expenditure figure would have been $200,448,999 which would have been $390,084 less than the approved estimate. is very satisfactory when it is considered that a contribution of $16 million towards the cost of the present emergency, which was not provided for in the original estimate, has been paid to His Majesty's Government, and that considerable unforeseen expenditure on security and civil defence measures has also been incurred during the year.

In order to produce this result, a buoyant revenue alone was not sufficient. It was necessary also to cut down expenditure wherever this could be done without loss of efficiency. Appreciable economies were exercised by Heads of Departments in response to an appeal issued early in the year. At that time revenue was not coming in well and considerable unforeseen expenditure was anticipated. There was also the question of charging off, if possible, the greater portion of the loan advances to expenditure. Efforts to reduce expenditure were assisted by the fact that it proved impossible for various reasons to complete certain items in the public works programme.

This resulted in a saving on Public Works Non-Recurrent which is expected to amount to nearly $7 million.

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

General Revenue Balance at 31.3.50...

Estimated Surplus 1950/51.

· ·

$154,152,842

23,791,877

Estimated Revenue 1951/52....8247,280,850 Estimated Expenditure " ".... 233,465,137

Estimated Surplus 1951/52...

Total estimated Surplus to be carried forward to 1952/53....

$177,944,719

13,815,713

$191,760,432

PART II. - MAIN ASPECTS OF THE 1951/52 BUDGET.

REVENUE.

The estimates of revenue are based on the rovised estimates for 1950/51, but due regard has of course been paid to the possible effects of the disturbed political

conditions in the Far East on certain items. It is more than usually difficult to estimate probable revenue for the coming financial year. The effects of the American embargo on the Colony's future are likely to be very serious, but there should be a time lag before the full effects are felt. It is