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.

ØRST LES 298 +

'S'I'O

TO:91 2661-JUW-DO

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