ENG-1967 — Page 69

FINANCIAL STRUCTURE

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recorded marked increases. The year 1964-5 produced a surplus of $78 million, but ended on a somewhat restrained note. While the ex- port trade remained buoyant the property market turned dull and this, to a degree, affected other sectors. The deficit of 1965–6 reflected this temporary set back and was due partially to special measures arising from it but mainly to a large reduction in land sales revenue. Although the 1966–7 budget anticipated a deficit of $94 million, a surplus of $12 million was achieved in spite of the payment of $43 million in respect of arrears of pay arising from the implementation of the Report of the 1965 Salaries Commission.

The budget for 1967-8, although estimating for a $37 million deficit, abolished the Broadcasting Receiving Licence fees, reduced stamp duty on conveyance of property, and the maximum rate of estate duty from 40 per cent to 25 per cent. These concessions are estimated to cost the revenue a total of $11.25 million a year at the present time. The deficit, of course, indicates that revenue will not be able to finance all the capital expenditure arising from govern- ment's heavy programme of non-recurrent public works, mainly for more schools, medical facilities, housing, water supplies, roads and land development schemes.

Revenue and expenditure for the two previous years, together with the estimates for this financial year are detailed and compared in Appendices VI and VII. In 1966–7, revenue at $1,818 million was $33 million more than the original estimate. The head showing the largest excess was internal revenue with $33 million over the estimate. There were shortfalls on three recurrent heads (duties, fees of court and water revenue) but all other recurrent heads produced surpluses. Again, as in the previous year, the biggest shortfall was in capital receipts from land sales which were below the estimate by some $19 million. Expenditure for the financial year 1966-7 was $1,806 million against the estimate of $1,878 million showing a shortfall of $72 million. Of the $545 million voted, $449 million was actually spent on civil engineering, water and building projects under public works non-recurrent heads of expenditure.

At March 31, 1967, net available public assets were $848 million, of which $138 million was earmarked in a Revenue Equalization