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Wednesday, February 24, 1971
In the last ten years, the ratio had varied between 65 per cent
in 1963/64 and 75 per cont in 1968/69. In the 1971/72 estimates, it was
74 por cent. Also, as there tended to be a time-lag between revenue growth
in times of increasing prosperity and the growth of public spending, Hong
Kong tended to accumulate surpluses during that period which enabled it
"to look at deficit sponding on capital works with sono oquinimity."
But there was one catch, in that some $150 million a year of the
Colony's present revenue from interests depended on the maintenance of its
surplus funds unspent.
"Not that this revenue would all disappear if we invest in works
which produce revenue directly or indirectly," ho commentod. "And, of course,
we have not in the post-war years experienced any long period of serious
time-lag in the opposite direction."
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