But for the communist-inspired troubles in 1967, which delayed
expenditure on capital account, the out turn of the financial year 1967/68 would have shown a deficit instead of the small surplus
£89,375 in fact recorded.
The "rolling" five year forecast of
In
revenue and expenditure indicated that by the end of 1971/72 an
accumulated deficit of £55 million was likely. This would run the
reserves down to some £19-20 million, a figure substantially below
the £61 million estimated to be required in 1971/72 to meet the
minimum safety level of half of annual recurrent expenditure.
these circumstances the Hong Kong Government took the view that other
sources of finance would have to be found for projects that must be
regarded as less essential compared with the needs of the Colony's
developing social services.
7.
Note:
The Colony's financial situation has not developed
along the lines foreseen. Recovering from its
set-back in 1967, the economy forged ahead in 1968
and continues to grow at the same high rate. An
estimated deficit of nearly £lm. in 1968/69 has
turned into a surplus of over £13m. The buoyancy
of the revenues and an apparent lack of physical
capacity to sustain an increased programme of
capital works has meant that the estimated outturn
of the 1969/70 budget is a surplus of over £20m.
compared with a deficit of £24m. in the earlier
forecasts.7
The Hong Kong Government has turned to Her Majesty's Government
to provide financial facilities because of the United Kingdom's
undoubted interest in maintaining Kai Tak as a first class airport.
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