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up a Securities Review Committee in November 1987 to review the constitution, powers, management and operation of the Hong Kong Stock and Futures Exchanges and their supervisory bodies. The Committee has been given six months to conduct this review and to recommend what changes are desirable to ensure the integrity of the markets and to protect investors.
e)
The Public Finances
37. The rapid growth of the Hong Kong economy in 1986 and 1987 has boosted government revenues, particularly from profits tax, stamp duty and land sales. There was thus a substantially higher surplus than previously expected in the financial year 1986/7 and the surplus in 1987/88 is expected to be still higher. To put these favourable results in perspective, they have to be seen in conjunction with the three years 1982/83 to 1984/85, when deficits were recorded and calls had to be made on the fiscal reserves in order that public services could be maintained.
38. The Hong Kong Government's policy is to limit the growth of public expenditure to the long term growth rate of the economy and to contain the size of the public sector, currently equivalent to about 15-16 per cent 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 just over 3 per cent in 1987.
SOCIAL PROGRAMMES
(a)
Housing
39.
The year 1987 saw the achievement of the target, set by the Hong Kong Government in 1972, of providing additional public housing for 1.8 million people. A large part of this provision has been in the new towns, the total population in which reached 2 million in 1987. In April, the Hong Kong Government published their Long Term Housing Strategy. This aims to provide increased opportunities for home ownership to meet the aspirations of the population, as well as to provide better quality public rental accommodation, partly
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