A.—4.

to the actual surplus. Greater copra exports than were anticipated, together with an advance in price, directly affected imports, revenue consequently showing a marked upward tendency late in the year. Close attention to collection of arrears of school fees and various items of Native and European taxation also resulted in expectations being substantially exceeded. Details of revenue and expenditure for the year ended 31st March, 1935, together with corresponding figures for the previous year, are shown in the following statements :—

Revenue.

Health Department revenue includes £4,768 for sales of medicinal liquor, this item showing a decrease of £1,857, a further decrease in this Department being due to the fact that no subsidy was this year due from the Kockcfel l er Foundation on account of the yaws campaign. A decline in revenue under the heading Treasury, Customs, &c., amounting to £9,089, is chiefly due to increased refunds of copra export duty and the operation for the whole year of the full refund of cocoa export duty, partly offset by a decrease in the rate of refund of export duty on bananas and increases in collections of arrears of taxation.

Expenditure.

(a) Decrease in Section IV, Health, is accounted for by reduced expenditure under Item, Salaries, £2,021, and Yaws Injection Campaign, £1,2.39. (b) Section VIII, Police and prisons, shows a decrease of £1,868, due chiefly to reductions of staff and salaries being effective throughout the whole of the year. (c) A decrease of £1,521 under Section X, Public Works, is due mainly to curtailment of expenditure under various heads such as buildings, roads, purchase of stores, and also to reductions of staff being effective for the full year. (d) Under Section XII, Treasury and Customs, £4,000 was expended under appropriation and invested during 1933-34, whereas no amount was voted during the current year.

6

Head of Revenue. 1933-34. 1934-35. £ £ 1. Education .. .. .. . . 733 8 23 II. Health .. .. .. .. io,445 7,621 III. Justice .. .. .. .. 870 794 IV. Lands and survey .. .. .. 145 179 V. Native .. .. .. .. 468 713 VI. Police and prisons .. .. .. 2,868 2 490 VII. Postal and radio .. .. . . 5,270 5,246 VIII. Public works .. .. .. 4,302 4 519 IX. Treasury, Customs, &c. .. .. 65,'512 56 ,'423 Total receipts .. .. 90,613 78,808

Head of Expenditure. 1933-34. 1934-35. T £ £ I. Permanent charges on public debt .. 9,768 9,800 II. Administrator and Government House .. 3,037 2,880 III. Education .. .. .. .. 5,097 4^910 IY. Health 17,150 13,937 V. Justice, Labour, and Public Trust .. 3,957 3,071 VI. Lands and Survey .. .. .. 1,075 L047 VII. Native .. .. .. .. 7,016 5^385 VIII. Police and prisons .. .. .. 10,652 8,784 IX. Postal and radio .. .. .. 5,136 4 779 X. Public Works .. .. .. 9,111 XI. Secretariat .. .. .. .. 6,464 6 581 XII. Treasury, Customs, &c. .. .. 11,261 7'o78 91,245 77,363 Less Public Trust (part) and Labour 1,290 858 Departments recovered — 89,955 76,505