THE ECONOMY
It has implemented more than 140 specific measures leading to a wide range of improved practices in many government departments. These include putting more public forms on the Internet, reducing the processing time for consent to sales in uncompleted development, streamlining lease modification and land exchange processes and improving the business friendliness of many government licensing procedures.
The BSPU has initiated an on-going programme to engender throughout the government a helping business culture and secure the right mindset among civil servants. As the first step, it held symposiums in November 1997 and September 1998 for all top government officials and their deputies respectively.
The Services Promotion Programme ensures that the right policies and programmes are in place to facilitate the growth and development of the services sector. The Financial Secretary chairs the Services Promotion Strategy Group comprising leading businessmen, prominent academics and senior officials to provide the steer. For 1998-99, the group endorsed a 15-point Action Agenda which includes studying the application of electronic commerce, improving the inward investment programme, promoting Hong Kong as an international shipping centre, and exploiting the growth of the Mainland's services sector.
Structure of Government Accounts
The government controls its finances through a series of fund accounts. The General Revenue Account is the main account for day-to-day departmental expenditure and revenue collection. Seven other funds exist mainly to hold investment or to finance capital expenditure and government loans. They are the Capital Works Reserve Fund, Capital Investment Fund, Loan Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Land Fund and Lotteries Fund.
The Capital Works Reserve Fund finances the public works programme, land acquisitions, capital subventions, major systems and equipment items, and computerisation and the payment of redemption money in respect of land exchange entitlements. Its income is derived mainly from land premia and appropriations from the General Revenue Account.
The Capital Investment Fund finances the government's capital investments (mainly in statutory public bodies), such as equity injections in the Airport Authority, the Kowloon-Canton Railway Corporation and the Mass Transit Railway Corporation, and capital investments in the Housing Authority. Its income is derived mainly from appropriations from the General Revenue Account and dividends.
The Loan Fund finances loan schemes such as housing loans and student loans. Its income is derived mainly from appropriations from the General Revenue Account, loan repayments, and interest on loans.
The Civil Service Pension Reserve Fund acts as a reserve to meet payment of civil service pensions in the unlikely event that the government cannot meet such liabilities from the General Revenue Account. Its income is derived mainly from appropriations from the General Revenue Account and investment income.
The Disaster Relief Fund finances grants for humanitarian aid in relief of disasters that occur outside Hong Kong. Its income is derived mainly from appropriations from the General Revenue Account and investment income.