CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 51

sec. 4/2291/51.

CONFIDENTIAL.

No. 48

GOVERNMENT HOUSE,

HONG KONG.

scq

K

May, 1951.

Sir,

(1)

기

Enclosure 1.

Enclosure 2.

Enclosure 3.

With reference to your telegram No.313 of the

2nd March, 1951, I have the honour to transmit for your consideration, copies of the estimates of revenue and expenditure for the financial year 1951/52, as approved by Legislative Council. Copies of en explanatory memorandum on the estimates are also enclosed, but since it was written there have been certain modifications in the estimates as a result of discussions in Select Committee. The amendments made in the final print of the estimates are set out in detail in the enclosed copies of the Select Committee's Report.

2.

Before commenting in detail on the estimates for 1951/52, it will, I think, he desirable to give a brief outline of the financial position on the 31st March, 1951. The revised estimate of revenue for 1950/51 was #274,240,876 and of expenditure $250,448,999. This revised estimate of revenue finally turned out to be tion low, because of a sudden spurt in receipts at the close of the financial year, which brought the trtal of local revenue collected up to the 31st March, exclusive of any revenue received by the Crown Agents since December, up to a figure of $286,384,561. Revenue for the last week reached a total of slightly under $9 million which is approximately double the normal figure. This was the result of certain abnormal payments, including one by the local Military Authorities in settlement of an outstanding claim.

3.

The final revenue figure for 1950/51 is expected to he nearly $288 million, which is once again a record figure and represents an excess of some $83 million over the original estimate. But this figure does not represent the actual surplus on the year's working. as it is to a large extent offset by increased expenditure due to the clearing of the loan advance account. Revenue estimates have to be produced some months before the commencement of the financial year to which they relate, and they must necessarily he framed in the light of possible developments which can at that time be foreseen. In January, 1950, the political out- look continued to be uncertain, while owing to the hlockade of Shanghai by the Nationalists, the whole of the godown space in the Colony was taken up and the Banks were forced to refuse to finance further imports unless evidence was furnished that storage space would be available. All this gave rise to a certain degree of concern, and it was considered prudent to allow for a substantial dron in revenue. Revenue did not in fact come in very satisfactorily in the early part of the year, and on eight occasions weekly receipts were below the average required to produce the total revenue estimated for. Later a tendency developed as in the

THE RIGHT HONOURABLE

JAMES GRIFFITHS, M.

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