Estimate

of Expenditure, I

have made the following major

observations.

·3

5

6

7

8

Ze. Firstly, whereas in 1979, the percentage of Medical and Health

per cent, fees and charges、 to that of the total expenditure was 6.

6.34

per cant

it has dropped to 3.7 in 1988-1989. Furthermore, using the

year 1983-84 as a common baseline, cumulative projected growth ine expenditure on Medical and Health services will exceed. the cumulative projected growth of GDP as assessed by the per cut 10 medium range forecast by 16 in 1991. This estimate does not even take into consideration new or improved services which ae inevitable.

9

11

12

13

14 Secondly, whereas across the world, in all developed countries, the rate of hospitalisation is dropping in spite of

bir canc their ageing populations, it has increased by 2.6 in Hong

Kong, even after deducting the population growth rate.

15

16

17

18

19

Last but not least, on calculating the expenditure

Minor Plant, ehicles and Equipment

block vote

under

for

le 20

e 21 Medical Services, it works out that $2,784 will be spent per D 22 fovernment hospital bed in contrast to only $838 per

23

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25

26

27

28

29

30

cap 31

32

33

34

35

36

ec.

per cint

subvented hospital bed. Thus, Government spends 332 as much

on replacing and purchasing new items of equipment for their

hospitals as compared to subvented ones. This pattern of funding has gone on for more than ten years, and accumulative

per cent. difference must be in terms of 1,000 or more by now, already.

10

Sir, allow me first to draw some conclusions from these observations before making proposals for change.

1. I reiterate what I said in my speech on the budget

five years ago and similarly stressed by

Senior Member yesterday, that there is: Čevidence of public expenditure running out of

control,

Zertainly, in the Medical and Health sector.

Our

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