-
3
Reserves
6.
against
Substantial reserves are Hong Kong's insurance
and economic contingencies,
future political
particularly important
for
an economy totally unprotected
from swings in the world business cycle. The expansion of
the economy (and some capital works underspending) has made
it possible for the Financial Secretary to add $14 billion
in reserves
bor
borrowings.
to the fiscal
1991-92,
before
Projected
reserves for 1996-97 are
over $70 billion, a
reasonable cushion.
Capital Works
7.
The
Budget makes provision
for spending
The Airport Core
of
$29 billion on capital works in 1992-93.
Programme accounts for only 25% of the total capital works
spending over the period to 1996-97. Thus about 75% of all
funds allocated to capital works
works will go to non ACP
projects.
Revenue Measures
8.
The Financial. Secretary has sought to reduce the
burden of direct taxation by across-the-board increases in
salaries tax personal
These
concessions conc
(83%)
Į
allowances ranging from 11% to 15%.
will cut the tax bill for $1.2 million
taxpayers, and drop 120,000 out of the tax bracket
entirely.
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