Secretariat file 16/4841/48.
24
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date...)
August, 1951.
No.
952
CONFIDENTIAL
11
536529
4
My savingram 215 of 22nd February, 1951.
Financial Position and Policy.
Estimated figures of revenue and expenditure for
the first three months of the current financial year ended 30th June, 1951, are as follows:-
2.
Revenue Expenditure
Surplus
$79,000,226 $45,130,301
$ 33,869,925
In paragraph 35 of my despatch No.48 of the 17th May, 1951, it was stated that the General Revenue Balance on the 31st March, 1951, was estimated at $1911⁄2 millions.· The accounts for the financial year 1950-51 have not yet been finalised, but it now appears that this figure should be
Thus the General revised to approximately $193 millions. Revenue Balance as on the 30th June, 1951, was in neighbourhood of $2261⁄2 millions,
3.
the
Particulars of revenue so far recorded under the
more important subheads are as follows:-
Actual so far recorded for First Quarter
Approved Estimates
1951/52
Proportionate Estimate for First Quarter
Liquor duties
$13,400,000
$3,350,000
$4,333,967
Tobacco duties
25,000,000
6,250,000
8,580,395
Other duties
18,000,000
4,500,000
5,458,770
Rates
27,040,000
6,760,000
8,120,645
Stamp duties
11,500,000
2,875,000
2,970,191
Earnings & Profits tax
44,000,000
11,000,000
16,229,192
Kowloon-Canton Railway Post Office
7,605,000
1,901,250
1,619,566
14,100,000
3,525,000
3,174,070
4.
The buoyancy of revenue at a time when trade and industry are suffering severely is paradoxical, and no reasonable explanation is at present forthcoming apart from the Earnings and Profits Tax subhead, where the revenue is assessed on earnings and profits for past years. It is noteworthy that two items which show shortfalls are the Post Office and the Kowloon- Canton Railway, and this must be taken as a clear indication
It is possible of a fall in the level of trade and business. that there has been a certain amount of inflation following on the restriction of supplies, especially from the U.S.A., and an increase in the volume of idle money.
5.
Expenditure for the first quarter was well below this being normal. one-quarter of the estimate for the year, There was a significant excess on Stores Department expenditure, the actual amount disbursed being $2,156,992 as against the quarter estimate of $1,345,684, an excess which reflects the rising trend of prices.
16. Loan expenditure...
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