t
Appendix A(3)
4
CAPITAL WORKS RESERVE FUND
Background
The Capital Works Reserve Fund was established on 20 January 1982 by Resolution of the Legislative Council for the purpose of financing the Public Works Programme and acquisitions of land. The first Resolution was subsequently replaced by a second on 27 July 1983. For the purpose of giving effect to arrangements for implementing paragraph 6 of Annex III to the Joint Declaration of the Government of the United Kingdom and the Government of the People's Republic of China signed in Peking on 19 December 1984, the 1983 Resolution was replaced by a third Resolution passed by the Legislative Council on 15 May 1985.
2 In accordance with the Resolution, all revenue from land transactions, other than those transactions decided upon before the coming into force of the Joint Declaration and those not conferring a benefit after 1997, is paid into the Suspense Account of the fund. Sharing and calculation of the cost of land production is carried out by the Sino-British Land Commission at the end of each quarter. The interest accruing to the Suspense Account is shared once a year at the beginning of the financial year.
3 Expenditure on public works and land acquisition is charged to the Works Account. Net expenditure incurred is mainly financed by a combination of the transfers from the Suspense Account referred to above and from the Reserve Account.
4 The Reserve Account receives transfers of resources from the General Revenue Account and releases these resources to the Works Account to fund net expenditure as required.
Suspense Account
OPENING BALANCE
Expenditure
Revenue
Surplus before Transfer to Works Account
Transfer to Works Account
Surplus/(Deficit) after Transfer to Works Account
Summary
Actual
Revised Estimate
Estimate
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
Smn
$mn
$mn
$mn
$mn
$mn
861
1,477
546
1,798
1,698
1,856
4,573
3,583
1,310
2,775
1,885
449
2,159
2,140
861
616
(255)
861
1,477
1,222
CLOSING BALANCE
Works Account
OPENING BALANCE
Expenditure
3,197
3,322
5,272
602
1,000
7,603
7,575
5,808
5,706
6,500
7,050
Revenue
137
80
80
Deficit before Transfers
(7,603)
(7,575)
(5,808)
(5,569)
(6,420)
(6,970)
Transfer from Suspense Account
449
2,159
2,140
Transfer from Reserve Account/GRA
10,800
7,700
7,758
450
4,659
4,830
Surplus/(Deficit) after Transfers
3,197
125
1,950
(4,670)
398
CLOSING BALANCE
3,197
3,322
5,272
602
1,000
1,000
Reserve Account
OPENING BALANCE
Transfer from GRA
Transfer to Works Account
CLOSING BALANCE
11
5,350
5,081
5,350
4,390
5,080
4,659
4,830
5,350
5,081
5,331