WEDNESDAY, FEBRUARY 25, 1987
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+AND THE AVERAGE ANNUAL SURPLUS OF $1.5 BILLION THAT WE HAVE PROJECTED OVER THE FORECAST PERIOD IS NO MORE THAN SUFFICIENT TO MAINTAIN THE REAL VALUE OF OUR RESERVES,+
MR JACOBS ŠAIS THE BULK OF THE GOVERNMENT'S ACCUMULATED FISCAL RESERVES WAS INVESTED BY THE TREASURY WITH THE EXCHANGE FUND THE ISSUE BY THE FUND OF INTEREST-BEARING BEST CERTIFICATES.
GAINST
+THE EXCHANGE FUND ORDİNANCE CURRENTLY LIMITS THE AMOUNT WHICH THE FUND MÁY BORŘOV FROM ANY SOURCE AT HK$30 BILLION, BUT THE LIMIT MAY BE ALTERED BY RESOLUTION OF THE LEGISLATIVE COUNCIL WITH THE APPROVAL OF THE SECRETARY OF STATE, HE SAID.
+GIVEN THE PRUDENT WILD UP WHICH WE FORECAST FOR OUR FISCAL RESERVES, IT WILL NOW BE NECESSARY TO RAISE THIS LIMIT, AND IT IS MY INTENTION TO MOVE A RESOLUTION IN THIS COUNCIL FOR THIS PURPOSE.+
EXPECTED SURPLUS PUT AT $2.1 BILLION OR $1.8 BILLION
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THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, EXPECTS A SURPLUS OF $2.1 BILLION ON THE GENERAL REVENUE ACCOUNT NEXT FINANCIAL YEAR, OR $1.8 BILLION IF A PACKAGE OF REVENUE MEASURES 18 ACCEPTED.
THIS PACKAGE WOULD REDUCE REVENUE BY A NET $325 MILLION IN
1987-88 AND $690 MILLION IN À FULL YEAR.
TOTÁL REVENUE WAS ESTIMATED TO BE $46.5 BILLION, WHICH +REFLECTS THE GOOD ECONOMIC PERFORMANCE WE HAVE ENJOYED IN THE CURRENT YEAR, WHICH WILL STILL BE FEEDING THROUGH INTO TAX RECEIPTS IN 1987-88.
+AS IN 1986-87, PROFITS TAX RECEIPTS ARE AGAIN EXPECTED TO RUN AHEAD OF ECONOMIC GROWTH. BUT I MUST BE CAUTIOUS IN ESTIMATING THE YIELD IN SOME OTHER AREAS WHERE THE LEVEL OF ACTIVITY IN 1986 MIGHT NOT BE FULLY SUSTAINED,+ HE SAID IN THIS BUDGET SPEECH TODAY (WEDNESDAY).
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