THURSDAY, OCTOBER 4, 1984
7
BIG PUBLIC SPENDING ON FUTURE
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A VERY LARGE PART OF PUBLIC-SECTOR EXPENDITURE IN THE CURRENT FINANCIAL YEAR WAS GOING INTO INVESTMENT IN THE FUTURE OF HONG KONG, THE GOVERNOR, SIR EDWARD YOUDE SAID TODAY.
GIVING HIS ANNUAL ADDRESS IN THE LEGISLATIVE COUNCIL, SIR EDWARD SAID THIS MONEY WAS BEING SPENT ON THE PHYSICAL INFRASTRUCTURE OF NEW TOWNS, ON TRANSPORTATION, ON HOUSING AND ON OTHER FACILITIES, SUCH AS SCHOOLS, HOSPITALS AND CLINICS, ON WHICH SOCIAL PROGRESS DEPENDED.
+TOTAL EXPENDITURE ON CAPITAL WORKS LAST YEAR AMOUNTED TO $12 BILLION AND A SIMILAR INVESTMENT IS FORECAST FOR THIS FINANCIAL YEAR. OF THIS $4.1 BILLION IS EXPECTED TO BE SPENT ON PUBLIC RENTAL HOUSING AND THE HOME OWNERSHIP SCHEME,+ HE POINTED OUT.
BUT PUBLIC SECTOR EXPENDITURE WAS RUNNING BELOW THE LEVEL ESTIMATED, MAINLY BECAUSE OF CONTINUING TIGHT CONTROL AND THE COMPETITIVE TENDER PRICES BID FOR SOME CAPITAL PROJECTS.
+ALTHOUGH IT IS STILL TOO EARLY TO PROVIDE A RELIABLE ESTIMATE OF THE REVENUE AND EXPENDITURE OUTTURN FOR THIS FINANCIAL YEAR, IT IS EXPECTED THAT THERE WILL BE AN APPRECIABLY SMALLER DEFICIT ON GENERAL REVENUE ACCOUNT THAN THE BUDGETED FIGURE OF $2.1 BILLION.
+THIS, IN ANY CASE, REPRESENTS LESS THAN ONE PER CENT OF OUR GROSS DOMESTIC PRODUCT, SIR EDWARD SAID.
THIS DEFICIT, HE ADDED, WOULD BE FINANCED IN PART BY THE HIGHLY SUCCESSFUL ́ ISSUE OF GOVERNMENT BONDS TO THE VALUE OF $1 BILLION REPAYABLE WITHIN FIVE YEARS.
THIS FISCAL YEAR'S PUBLIC SECTOR SPENDING WAS THUS LIKELY TO CONSTITUTE SLIGHTLY LESS THAN 17.5 PER CENT OF THE REVISED GROSS, DOMESTIC PRODUCT FORECAST, AS COMPARED WITH THE ORIGINAL BUDGET ESTIMATE OF 18.3 PER CENT.
ON THE FINANCIAL SECTOR, SIR EDWARD SAID LEGISLATION WOULD SHORTLY BE INTRODUCED INTO THE COUNCIL TO PERMIT THE OPERATION OF A NEW MARKET IN STOCK INDEX FUTURES AND OTHER FINANCIAL INSTRUMENTS.
A FURTHER BILL, AIMED AT IMPROVING THE REGULATORY FRAMEWORK OF THE COMMODITIES TRADING ORDINANCE, WAS BEING PREPARED.
SIR EDWARD REPORTED THAT THE REVIEW OF THE HONG KONG COMMODITY EXCHANGE HAD BEEN COMPLETED AND THE EXCHANGE WAS TO BE REORGANISED AND WOULD BECOME THE HONG KONG FUTURES EXCHANGE.
A FURTHER STEP IN THE DEVELOPMENT OF THE FINANCIAL SECTOR WOULD BE THE UNIFICATION OF THE FOUR STOCK EXCHANGES, PLANNED FOR THE END OF NEXT YEAR.
/+AS PART