As to my strategy reflected

in the Medium Range

She

Forecast, Miss Dunn pointed to a number of

a number of warning signs.

referred specifically to the assumption on inflation over the forecast period and I have already indicated why we trend assumption. Nevertheless, in producing

a its sensitivity to

5.5 1242 cent

have

tested

are using a the Medium

range of

Range Forecast, inflation assumptions. These tests

tests indicate that government's overall financial position is not significantly affected changes in the rate of inflation.

is cap

p

by

Miss Dunn supports a revenue-led budget.

revenue-led budget. I certainly like to

support the concept of living within our means. However, if we have to describe the budget as being led by anything, I would prefer to talk in terms of its being led by underlying trends in our economic growth.

Isc 29.

our

Conrad

Lam and

Several Members, and Dr.

to

resource planning and

This

is

on

Mr. Ngai Shiu-kit in particular, touched on the need to develop

allocation. for systems indeed something to which we have been paying: considerable

Our aim attention.

is

that to develop systems

focus

significant issues without becoming involved in a bureaucratic

We paper-chase.

are making progress and further developments

taking place

budgetary cycle

commenced for 1989-90.

are

in the

that has

already

the public. It is true

for

that existing

A number of Members, including Mr. F. K. Hu, have

referred to the growing use of statutory authorities providing services to

authorities have tended to

to be developed on an ad hoc basis. Work has been initiated within the Administration to define an overall framework within which the Government will exercise its continuing policy and financial interest in these authorities.

8

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/21.

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