20 -
deficits. For the financial year 1986/87, higher yields
from earnings and profits tax are expected, and the income.
from land sales will also be higher. On the basis of
present trends a significant improvement in the surplus is
likely at the close of the current financial year.
Nevertheless, the Hong Kong Government will continue
keep public expenditure firmly under control and to
to
contain the size of the public sector, presently
equivalent to about 16% of the gross domestic product.
This will be achieved through prudent management of
resources and by continued efforts to increase the
efficiency of the public service, the total size of which
has increased by only (..) in 1986.
(a) Education
SOCIAL PROGRAMMES
Some 17% of total public expenditure was devoted
to the Hong Kong education system last year, more than on
any other single item of government activity. During the
year the Hong Kong Government pressed ahead with its
secondary schools building programme.
schools are scheduled for completion
A further 36
between now and
1990.
On present
progress, the
full demand for