37
WEDNESDAY, FEBRUARY 29, 1984
SIR JOHN SPEAKS ON TELEVISION
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FOLLOWING IS THE TEXT OF THE SPEECH BY THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, TONIGHT ON TELEVISION.
+ I WOULD LIKE TO TELL YOU ABOUT THE BUDGET, WHICH I INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY. A MAJOR THEME IS THE MODERATION
INFLATION AND CONCERN FOR THE BURDENS OF THE LESS WELL OFF.
OF
→THE GOVERNMENT IS COMMITTED TO MOVING FORWARD STEADILY IN ALL AREAS. WHILE HONG KONG IS NOT YET RICH, IT IS NOT POOR EITHER, AND WE CAN PALPABLY AFFORD STEADILY IMPROVING PROGRAMMES FOR EXAMPLE FOR EDUCATION, MEDICAL AND HEALTH, SOCIAL WELFARE AND HOUSING. THESE MUST, HOWEVER, BE PAID FOR.
+ IN 1983 OUR TOTAL EXPORTS INCREASED BY 15 PER CENT IN REAL TERMS. THE GROSS DOMESTIC PRODUCT GREW BY 5.9 PER CENT. THE RATE OF UNEMPLOYMENT DROPPED. LARGELY BECAUSE OF THE FALL IN VALUE OF THE HONG KONG DOLLAR, THERE WAS A YEAR ON YEAR INCREASE IN INFLATION OF 10 PER CENT.
+THERE HAS BEEN A CONSIDERABLE SHORT-FALL IN GOVERNMENT'S REVENUE AND EXPENDITURE. THE DEFICIT WILL BE ABOUT $3.3 BILLION, WHICH IS CLOSE TO THE FORECAST,
+THE REASSURING +FREE+ FISCAL RESERVES AT THE BEGINNING OF
NEXT FINANCIAL YEAR WILL BE $8.2 BILLION,
+BY CONTROLLING EXPENDITURE AND INCREASING REVENUE INTEND TO CUT BUDGET DEFICITS TO A LEVEL WHICH CAN BE HANDLED BY A MIXTURE OF GOVERNMENT BORROWING AND USE OF RESERVES. THE LATTER, HOWEVER, ARE FINITE.
BILLION.
+ THE DEFICIT OSTENSIBLY FACING US FOR 1984-85 IS $3.6 BILL ION. THIS IS MUCH BETTER THAN THE COMPARATIVE $6.2 BILLION LAST YEAR. EVEN SO, IT IS TOO HIGH. I PROPOSE TO FINANCE IT BY USING $1.1 BILLION OF OUR FREE FISCAL RESERVES; BY INCREASING TAX REVENUES BY $1.5 BILLION, WHICH IS ONLY HALF WHAT WAS NECESSARY AT THIS TIME LAST YEAR AND BY RAISING $1 BILLION FROM THE SALE OF GOVERNMENT BONDS.
+TO MAINTAIN THE EXISTING BALANCE BETWEEN DIRECT AND INDIRECT TAXATION I INTEND TO RAISE AN ADDITIONAL $900 MILLION FROM DIRECT TAXES AND ONLY $600 MILLION FROM CAREFULLY SELECTED INDIRECT TAXES, BOTH OF WHICH WILL HAVE THE MINIMUM EFFECT ON PRICE INFLATION.
+THE INCREASES IN INDIRECT TAX WILL COME FROM A RISE IN THE BETTING LEVY: FROM HIGHER DUTIES ON FOREIGN WINES AND SPIRITS; FROM RATES, THOUGH NO ONE WILL FACE MORE THAN A 20 PER CENT INCREASE AND THE 43 PER CENT OF OUR POPULATION IN HOUSING ESTATES WILL BE LITTLE AFFECTED; AND FROM A TRANSPORT MEASURE DESIGNED TO DECREASE CONGESTION ON THE CROSS HARBOUR TUNNEL BY IMPOSING A TAX ON CARS, TAXIS AND LORRIES - BUT NOT ON PUBLIC LIGHT BUSES AND OMNIBUSES. THERE WILL BE OTHER INCREASES IN FEES AND CHARGES, INCLUDING A FLAT $2 TOLL ON THE LION ROCK TUNNEL.
/+AS FOR