TE USE OF HONG KON RESERVES
Present Level of Government Reserves
Government reserves at the end of farch, 1967, were
as follows:-
H.A zillion
£ million
Ceneral revenue balance
710.2
44.1
4
Revenus Equalisation Fund
130.0
8.6
Exabange Fund aurylus*
440.0
27.5
Balance of Development Loan Fund
!
33.0
2.1
Total
1321.2
82.6
Estimated as at 30th June 1967.
This level of reserves is equivalent to 8.7 months raveme on
the 1966/67 level.
2.
In addition to the above reserves, the Colony has poten-
tial reserves in its Exchange Fund.' If the external hacking
for the Fund ware reduced to 70%, sone IX./000 m. (£50 m.)
should be made available.
3.
Fossible Futuro Cladus on Rosarves
(a) Budzoti Hong Kong normally has a surplus of revenue
over current and capital expenditure. In 1966/67
there was an overell surplus of 1211.7 ». (£0.7 m.).
Revere was HKÁ 1818 m. (£113,6 m.); expenditure was HX $1806 m. (2112.8 m.). Över several of the past few
years Government has estimated for a deficit, which in
the event had not accurred. Thus in 1966/67 the
original ostimates provided for a deficit of Hố 104 m.
(£6.5 m.).
Forecasts which have been made for the next quinquen-
nium suggest a cumulative deficit on current and capital
account, Estimates by the Hong Kong Government suggest
a cumulative deficit or 107662 m. (241.4 m.) over the
period 1966/67 – 1570/71. An International Bank team
put the cumulative defioit at 18764 m. (£47.7 m.).
Part of the discrepancy is due to different assumptions
lot