Reserves
3
6.
against
Substantial
future
reserves are Hong Kong's insurance
and political
economic contingencies,
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
to the fiscal reserves in 1991-92, before borrowings.
Projected reserves for 1996-97 are over $70 billion, a
reasonable cushion.
Capital Works
7.
$29
The Budget makes provision for spending of
billion on capital works in 1992–93. The Airport Core
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 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
These
(83%)
tax personal allowances ranging from 11% to 15%.
concessions will cut the tax bill for $1.2 million
taxpayers, and drop 120,000 out of the tax bracket
entirely.
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