ENG-1958 — Page 76

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HONG KONG ANNUAL REPORT

The Revenue and Expenditure figures for 1957-8 are at Appendices IV and V. Revenue was $77 million over the original estimate, the main excess being on Profits Tax ($17 million), Land Sales ($13 million) and Duties ($10 million), all reflecting increased economic activity. Expenditure was $28 million below the original estimate, the main element of under-spending being Public Works Non-Recurrent, which was $34 million below the estimate of $152 million.

A deficit of $94 million has been budgetted for 1958-9, but it appears now that the deficit will not in fact arise, partly because the yield of revenue is once again exceeding expectations, and partly because the Public Works target of $187 million again appears to be beyond practical capacity.

The formal statement of Liabilities and Assets at Appendix III shows that at 31st March 1958 net available public assets amounted to $541 million, of which $138 million was earmarked in a Revenue Equalization Fund as a reserve against future deficits on current account. There were, in addition, a Development Fund of $149 million, of which $81 million was uncommitted, and a Local Loans Fund of $1 million. These were combined into a Develop- ment Loan Fund in October 1958. The Fund is used to finance social and economic development projects of a self-liquidating nature. The greater part has been used for low-cost housing schemes.

According to normal government practice the Statement of Assets and Liabilities excludes the Public Debt of the Colony from the liabilities. The debt at 31st March 1958 was equivalent to approximately $31 per head of population and was made up as follows:

$

34% Dollar Loan 1934 34% Dollar Loan 1940

920,000

3,772,000

31% Rehabilitation Loan 1947-8

46,666,000

Kai Tak Airport Loan

32,725,120

C.D. and W. Loans ...

749,600

84,832,720

Indebtedness rose by $12 million during the year, in con- sequence of drawings from the United Kingdom's interest-free