CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 26

Ihr Thordecai

Ihr Hall

8/10

26

The Governors saving at 11 shows H.Kongs quarterly revue of revenue and expenditure.

While expenditure for the period is much the same as last years and well below a quarter of the estimate for the year, which is the normal position for the first three months, revenue is considerably higher, making a surplus of nearly $34,000,000 as compared with $20,000,000 last year.

The Gov. also points out that the $49.887.461 loan expenditure previously charged to advances has now been charged off to expenditure, as will existing and future advances.

While the present financial position appears to be sound, the Gov. outlines steps to be taken to increase revenue to meet forthcoming commitments. One is to strengthen the staff of the Inland Revenue Dept., which, in addition to overcoming delays in assessing Profits Tax, should increase the existing yield from Earnings and Profits Tax by 20%.

The other is the introduction of the Business Registration Tax on which we have already commented in the despatch approving the estimates at 12.

The Governor also draws attention to additional commitments since the adoption of the estimates. The capital cost of these schemes amounts to approximately $4 million with an annual recurrent expenditure of approx. $2 million.

While the position at present appears to be satisfactory, there is of course the question of the proposed £1million defence contribution still to be agreed, but this will probably figure in the next quarterly revue.

Craicties.

? Put by.

P. Petherick

8/10.

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