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Sunday, March 31, 1974

In recurrent expenditure itself, there is a net increase of

$41.2 million over the approved estimate for the 1972-73.

The 23 assisted institutions are subvented on the basis of three

types of grant

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the deficiency grant, the cost-per-bed, and the lump sum.

In the case of a deficiency grant, the subvention is designed to

meet the difference between a subvented institution's approved expenditure

for a programme of activities approved by the Government, and its income

from other sources.

The grant used to ensure that services, which the Government would

otherwise be providing, are in fact provided. The Financial Secretary is

represented on the boards of deficiency grant institutions, and they are

required to work to approved detailed budgets.

following:

Institutions subvented on the deficiency grant basis include the

Alice Ho Miu Ling Nethersole Hospital

Society for the Aid and Rehabilitation of Drug Addicts

Tung Wah Group of Hospitals

United Christian Hospital

The cost-per-bed and the lump sum are varieties of a discretionary

grant. These grants are designed to assist the institutions concerned to

meet the cost of specific types of medical services, or of hospital beds

which the Government considers on medical grounds should be brought into the

public sector to meet the needs of those unable to afford unsubsidised in-

patient treatment.

/In this way,

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