ENG-1967 — Page 70

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FINANCIAL STRUCTURE

Fund as a reserve against future deficits on current account. Accord- ing to normal government practice, the statement of assets and liabilities excludes the public debt of the Colony from the liabilities. The debt at March 31, 1967 was $75.5 million or the equivalent of approximately $19 per head of population. Indebtedness decreased by $3.3 million during the year, owing mainly to the repayment of $3.2 million of the United Kingdom's interest-free loan of £3 million ($48,000,000) for the development of Kai Tak Airport. This loan is repayable in 15 annual instalments; the first repayment was made on October 1, 1961. The Rehabilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruc- tion, is repayable in 1973–8; there is provision for a sinking fund which stood at $28.1 million on March 31, 1967.

In addition to the Assets and Liabilities referred to, there exists the Development Loan Fund and a Lotteries Fund for special purposes (see Appendix XIII). The Development Loan Fund, of $579 million, 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. At March 31, 1967 outstanding com- mitments from funds allocated exceeded liquid assets of $33 million by $179 million. The Lotteries Fund, established in 1965, is for the support and development of social welfare services in the Colony. The fund started with a transfer from general revenue of $7.4 million and an additional $5.2 million was credited during the period June 30, 1965 to March 31, 1967, by which date grants and loans amounting to $8.69 million had been approved. Details of Public Debt and Colonial Development and Welfare schemes and grants are shown in Appendices X and XI.

The audit of all public accounts and of certain Special Funds is carried out by the Director of Audit under the general supervision of the Director General of the Overseas Audit Service. Annual reports on the accounts by the Director of Audit and the Director General are presented to the Legislature and transmitted to the Secretary of State.

EXCISE DUTIES

There is no general tariff and only five groups of imported commodities-alcoholic liquors, tobacco, hydrocarbon oils, table waters and methyl alcohol-are subject to import duty. Excise