Dr. H. H. Kung's Report on 1935 Fiscal Year China's budget deflect during the fiscal year 1095-36 was even larger than in 1034-35, according to pre~ liminary figures, and there was a material decrease of customs revenue Ju the past twelve months, due to wholesale smuggling in North Chin {international complications diseouraging import commitments, reduced purchasing power due to floods and communist activities, and the lessening of imports due to lower exchange. This is disclosed by Dr. H, H. Kung, Minister of Finance, in his Report for the 23rd, seal, year ending June 90, 1995, his third since assuming the post, and released for publication to-
The National Debt stands at $335,- 000,000 but the major development during the year was the consolidation of internal debt, excepting four issues totalling about eight per cent, of the oral consolidation loan which suballtutes five series of bonds totalling $1,400,000,000 in place of 33 former issues and which now makes It possible to reduce debt charges by about '$85,000,000 yearly. The budget deficit for 1935 1s 208 per cent, the deficit being approximately $196 million with net total revenue at'$745 million and net total payments at $041 million. Against this can be offset an approximate total of debt retirement of {$125 million, Further, despite shu age of revenue and special demands on expenditure, the two largest items of budgetted expenditure (military at $308 millions, equalling 41.2. per cent. of net total payments, and toan and indemnity service at $237 million which equals 25.2 per cent, of net total payments) were. maintained while educational and reconstruction expenditure increased from 2.87 per cent. for' the previous year of 625 per cent, of net total payments at
Text read from the printed page and cleaned; old type leaves the occasional error.