'ONSIDERING the desirability of $2,292,100 being.excess Shanghai, Mar. 23. of reducing a preliminary deficit of expenditure over income in the amended estimates of the Shanghai Municipal Council for 1041, the treasurer has recommended that $1,500,000 be earmarked from general reserve representing accumulated profits on sales of surplus land, difference in exchange on' sterling balances as on December 31, last year, and a portion of the credits derived from the reconstitution of sinking funds in previous years.
Approval of this measure would reduce the deficit to a provisional figure of $792,100 and it is conceivable that the reconstilution of sources of revenue by the sub-committee may produce sufficient additional revenue during the year and achieve the balanced budget that was earlier envisaged.
The above was disclosed in_a state ber of employees exercising their ment released by the Shanghat option to take tong leave during 1041 Munlelpal Council yesterday dealing than had Been contemplated last with its 1941 budget; ordinary income December. and expenditure which will be fol-'Ordinary Income Towed later by a report with the ex= traordinary Income and expenditure The estimates of ordinary income of the Council for the year. fare reasonably based with due appre-dation-of all the relevant factors and Treasurer's Recommendation the revenue shown as accruing should The treasurer has recommended realized if no untoward circum= that no provision be made in the stances Intervene during the course en pital budget this year for the dis~ fof the year, Provision has been inposal of the estimated deficit on the eluded for' full returns from. the ordinary budget of $792,100, In his Western Extra-Settlement Area as an report the Treasurer stated that it offset. to the cost. of services. fur-should be borne in mind that the ushed Ju that area by the Council and {$1,900,000 to. be appropriated from margin has been allowed for addl-General reserve Is represented Jargeional revenue to be derived from the by assets temporarily frozen, but reassessment of owner-occupied prefg anticipated that surplus areas of mises throughout all arcas, and and the raising of loans will statement attached tothe trea~ serve {0 liquidate the transfer before Jsuree's report contains an analysis of the end of the year. the various items of income. "Gross "The net deficit reflects a provisional revenue from all sources Is estimated deficit on Education Account fat $79,119,140 an increase of $37,257,- $2,052,000 and an estimated surplus 990 or 89.00 per cent. as compared on general account of $2,059,080. This with the Budget for 1040. Of this fsceming paradox it was stated, fs due amount of $79,119,740 Land Tax to the necessity for limiting the accounts for "$19,450,000, "General transfer of funds for educational pur~ 'Municipal Rate' for $35,197,000 and poses to the maximum permissible of Special Rate for $2,908,000, or a total the equivalent of a 2 per cent, rate of, $58,175,000, and correlative proportion of" land 'The' Land Tox and Rate provisions fax until such time as satisfactory fare based on the bases of levy. ap= measures for ensuring the adequate Proved at the recent special meeting Ananelng of educational requirements of ratepayers:—have been devised by the special cent surcharge. cee Land Tax—135 per cent. plus a 40 per auh-committee to examine and advise the Council regarding education policy General "Municipal Rate—27 per cent, and fnanee generally, PiGpecist Hake ae por coa ph Report Approved by Councit per cent, surcharge, 'The report dealing with the Trea 'The product of 0 per cent, General surer's report on ordinary income 'Municipal rate and' correlative Tand and" expenditure received by the tax is assessed in round figures. at Finance Committee and approved by $1,400,000 for 1941 as compared with the Council stated inter. alia: $1,200,000 for 1940. The: correspond-'The Individual estimates of Munt-Ing products of a one per cent, special cipal departments having been re~ Tale are $89,000 for 1941 and §38,000 for 1940, viewed and approved by the relevant. departmental committees, the Trea Ordinary Expenditure surer presented for the consideration of the Finance Committee at its referred briefly to, certain features The tressurer in his report then Meeting on March 17, the complete budget of ordinary income and ex-'Meeting dhe budgetary position as 3 penditure for 1041, Whole, before reviewing the expen Tu. his report the 'Treasurer re-Sie esimaesof Individual doers minded members that the basis of in= lyre' serious decline from various The main adverse factor is obvious: creased taxation assessed last Decem. ber for submission to the Ratepayers in. special meeting was designed to Sauses in the purchasing val of the Chinese dolar which has occasioned achieve a balanced working budget for the year 1041, The realization of this expectation " has unfortunately been disturbed by certain influences which he died briefly os follows:
The larger number of employees. ex. greaing their option 40, ake on feb String! obit. than had. been anticipated when this privilege was veinstituted:
The necessity for raising @_ blanket appropriation "to cover. the additional Son of Police personnel seconded for Suity "fa "the: mewiyconstiiuied. Joint polite force inthe "Western 2xtra~ Eeitiement area! and "the necessity: for providing additions} funds fo cover Impending Fevistons {Me"pas" andi allowances of the Hussian Remedial measures have bee tah" ret th passion Se fat iPM Reon practiesble todo 50 and Mellon has been ion to prove for Meconary' uddional dapendare Uiihn he srrowert_ pole come thee monts" ena rary a fonlinvous and "unprecedented rises inthe costs of commodities sri sors ieee: required forthe normal and fMieont functioning of the' Bfunietfully. The enormous rise tu the cost St living hot necemitated the crout substantially higher compensatory Sawances 10° the' ott' from. which there con be no relief until conditions improve Provision hax been included thfoushcut all departmental estimates, for Formal promotions and pay Mere: ments in'uccordance with the grading Seales. Another factor of importance in the ye-nattulon of Tong eave on 4 modified basis after suspension of Siahtly more than a year Wis now Climated thatthe coat during 10H St restoring this privilege will Gorder closely upon $4.500000, Ths of course fe'due to the adverse offest of the low prevailing exchange value of tis Chinese" dine on foreign currency aha of me seme ala Sai arm Variation in Exchange Major items relating to the revised income and expenditure estimates were outlined in comparative state ments accompanying the report, 'A net defeat on the ordinary budget of some §799.100 Is provisionally anticipated on the basis of the estimates tus they are constituted at present, "IL Will thus be seen that the excess of expenditure over income in the amended estimates amounts to $2.- 202,100, This adverse position is almest entirely due to the larger num-
The 1941 budget has been framed en the basis of a 344d. dollar as com-paved with a 4d, dollar for last year. The Council's foreign currency commitments in 1940 wore approximately £20000 so that additional. expen diture to be faced in regard to these commitments during i041 as a result of this variation in exchange is oughly $1,700,000.
'A statement attached to the Treasurer's report contains an analysis of the various main expenditure head-Ings and discloses that estimated expenditure under "general" amounts to $14.927.960 and under "education" to $5973.00 or u total of $80,001.840. This latter figure of $80,901,840 represents an Increase of $34-168.480. or 78.37 per cent, as compared with the relevant Budget total for last sear.
Text read from the printed page and cleaned; old type leaves the occasional error.