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000 GOVT HOUSE HK
11
the law. No decisions are taken by the Government
as to whic industries or activities might best be suited
to Hony
Hong kong conditions, or attempts made to attract or
subsidise particular industries at the expense of others.
21.
The Hong Kong government's fiscal policy has been
bassa on the principle of generally balanced budgets, with
revenue Covering all expenditure, including capital
expenditure. In only 6 years since the Second World War
have there been budget deficits, and then usually only of
modest proportions. The other 37 years nave all registered
surpluses, sometimes very substantial. The result has been
the accumulation of large fiscal reserves and virtually no
22.
The maintenance of a relatively low, stable and
simplo cystom of taxation, with the minimum of loopholes
and special deductions, has provided an incentive to create
AS a result, the Government has been able to
wealth.
collect large
benefitted.
revenues from which the whole community has
The current budget provides for the
HK$70,000 million, 350 times more in
expenditure of some
money terms than in the early post-war years and probably
more than 50 times larger in real terms.