WEDNESDAY, DECEMBER 11, 1385
4
SIR JOHN SEES BALANCE IN PUBLIC FINANCES
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NEX YEAR, GIVEN NO UNEXPECTED SHOCK, HONG KONG WILL RETURN TO EQUILIBRIUM IN ITS PUBLIC FINANCES, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.
AND PROVIDED THEREAFTER THAT OVER A PERIOD INCREASES IN PERCENTAGE TERMS IN REAL EXPENDITURE DID NOT EXCEED THE GROWTH RATE OF GDP, HE COULD SEE NO REASON FOR FURTHER INCREASES IN TAXATION AS OPPOSED TO MERELY KEEPING UP WITH INFLATION, HE ADDED.
+CONSEQUENTLY, IN SIMPLE WORDS DIFFERENT ITEMS OF EXPENDITURE CAN BE VARIED LIKE DIFFERENT SIZED SLICES OF THE TOTAL PREDETERMINED EXPENDITURE CAKE. SO CAN INDIVIDUAL ITEMS OF REVENUE (INCLUDING TAXES) PROVIDED AGAIN THAT THE DIFFERENT SIZED SLICES DO NOT EXCEED THE SIZE OF THAT CAKE.
+OF COURSE NONE OF THIS CAN BE ACHIEVED WITHOUT DEFICITS OR NEW TAXES IF A MAJORITY SEEK MAJOR AND EXPENSIVE NEW SOCIAL AND OTHER RECURRENT PROGRAMMES, SIR JOHN SAID.
HE REMAINED CONVINCED, SIR JOHN SAID, THAT IN VIEW PARTICULARLY OF HONG KONG'S EXPOSED POSITION, CONTINUING CONTROL OF PUBLIC SECTOR EXPENDITURE MERITED TOP PRIORITY.
+ IT IS NOW DOWN FROM 19 PER CENT TO UNDER 16 PER CENT OF COP. SIMULTANEOUSLY, OUR ENTREPRENEURS MUST CONTINUE TO BE ENCOURAGED BY MINIMUM GOVERNMENT INTERVENTION, BY MAXIMUM RELIANCE ON MARKET FORCES AND BY THE LOWEST POSSIBLE DIRECT TAXATION,+ SIR JOHN SAID.
SIR JOHN SAID ALSO THAT NEXT YEAR'S BUDGET PROPOSALS WOULD BE SUPPORTED BY A COMPREHENSIVE FIVE-YEAR MEDIUM RANGE FORECAST. IT WOULD BE ONLY A PLANNING TOOL, BUT WOULD SHOW ALL ANTICIPATED REVENUES AND EXPENDITURES PLUS MOVEMENTS IN FUNDS.
DEALING WITH THE EMPHASIS PLACED ON THE IMPORTANCE OF KONG KONG'S INTERNATIONAL REPUTATION IN FINANCIAL AFFAIRS, AND THE NEED TO THIS END FOR PROGRESS AND IMPROVEMENT IN VARIOUS ORDINANCES AND OTHER AREAS, SIR JOHN SAID HE WAS +WHOLLY IN SYMPATHY+ WITH ALL THE POINTS RAISED AND WELCOMED THE SPUR THEY WOULD ADD TO THE GOVERNMENT'S EFFORTS.
SIR JOHN SAID THAT WHILE THE RAPIDLY CHANGING+ ECONOMIC SCENE IN HONG KONG EMPHASISED THE CONTINUING GROWTH OF THE IMPORTANT SERVICES SECTOR, IT STILL REMAINED TRUE THAT MANUFACTURING INDUSTRY WAS VITAL TO HONG KONG.
ON THE QUESTION OF THE FORMATION OF A TRUE HONG KONG SHIPPING REGISTER, HE SAID THAT THE GOVERNMENT, WITH THE FULL SUPPORT OF THE SHIPPING INDUSTRY IN HONG KONG, WAS MOVING AS FAST AS IT COULD.
EXPRESSING HIS