14
Enclosed in 9 is a copy of the 51/52 Estimates. In his covering despatch, the Governor gives brief details of the financial position on the 31st March, 1951.
The final revenue figure for the year 1950/51 is expected to be nearly $288 million and expenditure about $250 million, resulting in a surplus of about $37 million.
One important contribution to this surplus was the rise in trade, brought about by the increase in the volume of goods passing through Hong Kong, following the results of the blockade of Shanghai by the Nationalists. Revenue from tobacco was unaccountably high, and all the main heads, except in the case of stamp duties, have exceeded the estimate. Duties as a whole are responsible for nearly half the revenue surplus, and estate duty realised an unexpectedly high total.
Included in the revised expenditure was $50 million in respect of loan advances, Charged off to expenditure, and a contribution of $16 million towards the cost of the present emergency has been paid, which was not included in the original estimates.
Despite the above items of expenditure together with considerable expenditure on security and civil measures for defence, the position is very satisfactory especially in view of the fact that the necessary. legislation for the increase in rate of profits and earnings tax, and the introduction of business registration tax, which was to be introduced to help wipe out the estimated deficit on the introduction of the 50/51 estimates, was not introduced in time but is to be introduced in the 51/52 financial year.
As introduced into Legislative Council the estimates for 1951/52 provide for revenue of $247 million and expenditure of $233 million resulting in a surplus of $13 million.
It was made clear that there would be a considerable reduction in this surplus later in the year because the $81 million in respect of reinforcements was only a tentative one. We have already raised this point on 94003/10/51, but have had no reply to date. The Governor does suggest in this despatch that this years contribution might be the same as last year, in which case, a supplemen- tary vote would be necessary.
Other points of interest are:-
(a) a drop of approximately $100,000 in basic salaries showing that efforts to cut staff are at last showing results.
(b) the Medical Department has taken over the Maternity Home at Shatin, and provision has been made for the extension of school medical service.
/(c)
No comments yet.
Private notes are available after approval.