103.
In putting together my tax
a
proposals,
I have
broadening of the tax base to achieve
As and when people enjoy a real
deliberately sought greater fiscal stability.
increase in their income, it is not unreasonable that they should funding of our public services. I have also contribute to the funding of
referred to the work that
are carrying out in relation to a broadly based indirect tax, but I repeat my assurance that we will not rush into something that does not suit us.
we
104.
It is in the context of my theme of continuity and
forward planning that I believe we
I believe we must remind ourselves of the
need for prudence. The governance of
is becoming Hong Kong increasingly complex and the range of functions required of the Administration is expanding. The private sector, too, is playing its part particularly in the provision of infrastructure. are making greater use of statutory authorities.
105.
an
And we
All this is evidence of dynamism and change. In such
environment,
remain I
the growth
a
of aware
in
that an
whole
the
sector public
need
for
expanding public
continuing
expenditure.
sector
economic
prospects.
is often a major factor
should This
in
in
not
be
vigilance regarding Experience elsewhere shows
relation to the economy as
dampening
long-term
allowed to happen in Hong Kong.
106.
I recognise that my overall budgetary package could well provide a stimulus to the economy in 1988, but I believe that the effect will be tolerable. I have no doubt, however, given full capacity, that the economy will still be operating at near that any further stimulus would be inappropriate and could well result in higher inflation rather than greater real growth.
47
/107. I