1989-03-14 16:25 COMMS. OFFICE (GOV'T HSE)
852 5 845 0995 P.04
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within the law. No decisions are taken by the Government
as to whicn industries or activities might best be suited
to 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
based on the principle of generally balanced budgets, with
expenditure, including capital
revenue
covering
ali
War
expenditure. In only 6 years since the Second World
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
public debt.
22.
The maintenance of a relatively low, stable and
simple system of taxation, witn the minimum of loopholes
and special deductions, has provided an incentive to create
As a result, the Government has been able to
collect large revenues from which the whole community has
wealth.
benefitted.
The current budget provides for the
expenditure of some HK$70,000 million, 350 times more in
money terms than in the early post-war years and probably
more than 50 times larger in real terms.