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e.g. an improvement of personal and child allowances in such a way as to remove the tax liability from those payment small amounts of tax. The total cost to the revenue of such changes would be $HK40 millions. Estimated capital recurrent revenue will increase by $HK249 millions (36%) to 3HK938 millions, partly on account of
land sales.
Expenditure Estimates
8. The total expenditure estimate is $HK8,245 millions, an increase of 20% on 1976/77, compared to $HK8,600 millions (23%), which was what the Governor anticipated in December. Estimated recurrent expenditure will increase by $HK8 35 millions (15%
not 17% as the Governor anticipated in December) to $HK6,236 millions. The bulk will be spent on "maintaining present services, expanding them to meet increased demand at existing standards, and extending and improving them within approved policies in accordance with timings in the Planning Paper". $HK196 millions is for new services, including public assistance for the unemployed and the silicosis compensation scheme, both matters to which we have attached importance. Estimated capital expenditure will increase by $HK567 millions (39% - compared to the 47% anticipated by the Governor in December) to $HK2,009 millions, of which $HK1,434 millions will be for public works programmes, including new towns and housing.
Breakdown of Expenditure
9.
The breakdown of expenditure for the key areas covered in the Planning Paper is as follows:
*
Revised
1976/77
Draft 77/78
Difference
Inc
$HK
$HK
Education
1,453
1,658
+ 205
14
Housing
659
1,019
+ 360
56
Social Welfare
368
433
+
65
18
Medical & Health
662
781
+ 119
18
Labour
20
27
7
35
3,162
3,918
+ 756
20.4
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