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THURSDAY, APRIL 15, 1962
PURPOSE OF FISCAL SYSTEM
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THE GENERAL PURPOSE OF THE GOVERNMENT'S FISCAL SYSTEM IS TO FINANCE EXPENDITURE REQUIRED TO IMPLEMENT AGREED PROGRAMMES. THE FINANCIAL SECRETARY. THE HON JOHN BREMRIDGE TOLD THE LEGISLATIVE COUNCIL TODAY.
IN HIS SPEECH CONCLUDING THE BUDGET DEBATE, MR BREMPIDGE SAID: THE GOVERNMENT HAS NEVER TRIED TO PURSUE SOCIAL JUSTICE THROUGH TAX MEASURES ANCILLARY TO OVERALL POLICY, THOUGH THERE IS CLEARLY A DEGREE OF REDISTRIBUTION IN FOR EXAMPLE THE PUBLIC HOUSING FIELD AND IN THE STRUCTURE OF THE SALARIES TAX. +
MR BREMRIDGE SAID HE BELIEVED THAT THE GOVERNMENT'S POLICIES WERE PROPERLY DESIGNED TO MAKE THE POOR RICHER AND NOT THE RICH POORER.
+THEY HAVE CLEARLY DONE SO. I DO NOT INTEND TO REPEAT THE MANY RELEVANT PASSAGES FROM MY BUDGET SPEECH, BUT EMPHASISE MY BELIEF THAT LESS GOVERNMENT TENDS TO BE MORE EFFICIENT GOVERNMENT, HE SAID.
HONG KONG'S EXPERIENCE OVER RECENT YEARS PROVIDED SOME FIRM EVIDENCE OF THE EFFECTIVENESS OF HIS PREDECESSORS' CONSISTENT POLICIES, MR BREMRIDGE SAID, ADDING THAT UNOFFICIALS IN THE COURSE OF THIS YEAR'S DEBATE HAD AGAIN GENERALLY ACCEPTED THE VIRTUES OF APPROPRIATE DEGREES OF THRIFT, CREATIVITY, COMMONSENSE AND ABOVE ALL PLAIN DECENCY IN CONTRIBUTING TO THE
IMPROVING LIVING STANDARDS OF OUR PEOPLE AND TO THE PRUDENT FREEDOM SUCCESSFULLY ENJOYED BY OUR COMMERCE AND INDUSTRY.
IN HIS SPEECH, THE FINANCIAL SECRETARY ALSO RESPONDED TO MORE SPECIFIC POINTS RAISED BY UNOFFICIAL MEMBERS OF THE COUNCIL DURING THE DEBATE.
ON CONTROL OF PUBLIC SECTOR EXPENDITURE, MR BREMRIDGE SA! THE +ASTRINGENT ADVICE+ GIVEN BY THE HON LYDÍA DUNN, THE HON CHARLES YEUNG, THE HON WONG LAM, DR THE HON RAYSON HUANG, THE HON WILLIAM BROWN AND THE HON STEPHEN CHEONG WAS HELPFUL.
HE SAID HE WAS PLEASED THAT THEY AGREED THAT THE GROWTH RATE IN REAL TERMS OF PUBLIC SECTOR EXPENDITURE ON CONSOLIDATED ACCOUNT SHOULD REFLECT AS CLOSELY AS PRACTICABLE THE GROWTH RATE OF THE GDP.
ONELF
•NOTHING THAT I SHALL SAY REPRESENTS NEW, POLICY ONLY LAST YEAR SIR PHILIP IN THIS DEBATE SAID: THE NEED FOR SELF IMPOSED RESTRAINT IS SELF EVIDENT".+
BUT,
+THE PRINCIPLE IS I AM SURE, GENERALLY ACCEPTED ALAS, THE PRACTICE IS MORE DIFFICULT, AND IT WOULD BE DEMAGOGIC FOR ME TO PRETEND OTHERWISE, MR BREMRIDGE SAID.
SETTING ASIDE ANY DEBATE ON COMPETING PRIORITIES, HE SAID, PROBLEMS TO BE FACED INCLUDED THE DIFFICULTY OF DECIDING REASONABLY ACCURATELY EACH YEAR WHAT THE GROWTH RATE OF THE GDP WOULD BE IN THE FOLLOWING YEAR.
MOREOVER IN THE YEAR 1981-82 THE ACTUAL GROWTH RATE OF PUBLIC SECTOR EXPENDITURE GROWTH IN REAL TERMS ON CONSOLIDATED ACCOUNT WAS 21.8 PER CENT.
/+SUBSEQUENTLY FOR
+