WEDNESDAY, MARCH 1, 1989
+
BUDGET A COMPLEX TASK, FS SAYS
* * * *
THE FINANCIAL SECRETARY, THE HON PIERS (WEDNESDAY) THAT HIS TASK IN PREPARING THIS YEAR'S BUDGET HAD BEEN
JACOBS, SAID TODAY TRY TO MEET THE ASPIRATION OF THE COMMUNITY WITHOUT CURRENT INFLATIONARY SITUATION OR PLACING IN PROSPERITY IN THE LONGER TERM.
TO EXACERBATING THE JEOPARDY HONG KONG'S
ONE. AS HE HAD HAD TO THE SOLUTIONS HE HAD
HE SAID THE TASK HAD BEEN A COMPLEX RECONCILE MAJOR CONFLICTING PRESSURES, BUT ADOPTED INEVITABLY REPRESENTED A COMPROMISE.
FOR STABILITY AND
HE REMAINED ACUTELY AWARE OF THE NEED CONTINUITY IN THE MANAGEMENT OF THE TERRITORY'S PUBLIC FINANCES.
PRESENTING HIS BUDGET FOR 1989-90 IN THE MR JACOBS SAID THERE WERE THREE KEY FACTORS WHICH HE HAD HAD LEGISLATIVE INTO ACCOUNT.
COUNCIL,
ΤΟ ТАКВ
OF SUBSTANTIAL UPON A MAJOR DEVELOP IN
"FIRST, INFLATION; SECONDLY, THE ACCUMULATION BUDGET SURPLUSES; AND THIRDLY, THE NEED TO EMBARK PROGRAMME OF INFRASTRUCTURAL WORKS TO ENABLE HONG KONG TO THE 1990'S AND BEYOND," HE SAID.
MR JACOBS SAID THE INFLATION HONG KONG WAS CAUSED BY THE VERY SUCCESS OF ITS ECONOMY.
EXPERIENCING WAS
LABOUR,
"QUITE SIMPLY, DEMAND FOR VARIOUS RESOURCES, INCLUDING IS OUTSTRIPPING SUPPLY. THIS STRONG DEMAND IS HIGHER PRICES AND COSTS OF PRODUCTION.
BEING TRANSLATED INTO
"IN DUE COURSE, THE ECONOMY WILL ADJUST PRESSURES WILL EASE. BUT IN THE MEANTIME, WE MUST ENDEAVOUR TO
AND INFLATIONARY THAT OUR POLICIES DO NOT MAKE MATTERS WORSE.'
11
ENSURE
IN
AN
THE ACCUMULATION OF BUDGET SURPLUSES, WHILE APPROPRIATE INFLATIONARY SITUATION, DID CREATE OTHER PROBLEMS, MR JACOBS SAID.
THE
SERVICES. SERVICES ARE
MY
"THERE IS AN UNDERSTANDABLE EXPECTATION BY THE PUBLIC THAT SURPLUSES SHOULD BE USED TO FUND NEW OR IMPROVED COLLEAGUES WITHIN THE ADMINISTRATION WHO PROVIDE NATURALLY KEEN TO RESPOND POSITIVELY.
THESE
AT
SURPLUSES
FULL BY
"HOWEVER, GIVEN THAT THE ECONOMY IS ALREADY OPERATING
IF THE GOVERNMENT WERE TO REDUCE THE
ITS EXPENDITURE SUBSTANTIALLY,
CAPACITY, INCREASING WOULD BE INTENSIFIED,'
INFLATIONARY PRESSURES
HE SAID.
"IF EXPENDITURE IS NOT TO INCREASE, THEN THERE BE CALLS TO REDUCE THE SURPLUSES BY INTRODUCING TAX TAX CONCESSIONS THEMSELVES CAN BE JUST AS
WILL NO DOUBT CONCESSIONS,
BUT
INFLATIONARY
AS INCREASED
GOVERNMENT EXPENDITURE.
/MR JACOBS