WEDNESDAY, MARCH 1, 1989
8
MARKET
FISCAL WE
"OUR POLICY HAS ALWAYS BEEN TO LEAVE THE INITIATIVE
BUT WHERE DEVELOPMENT TO THOSE WHO DEAL IN THE MARKET ITSELF. OR INSTITUTIONAL FACTORS ARE IDENTIFIED AS INHIBITING DEVELOPMENT, ARE PREPARED TO CONSIDER APPROPRIATE MODIFICATIONS.
"THIS POLICY REMAINS UNCHANGED. THE UNDER-DEVELOPED STATE OF
SOME MARKET THE HONG KONG DOLLAR PAPER MARKET HAS BEEN ATTRIBUTED BY PARTICIPANTS NOT ONLY TO THE LACK OF GOVERNMENT DEBT BUT ALSO INCIDENCE OF INTEREST TAX.
TO THE
"THE ISSUE OF EXCHANGE FUND BILLS, AS I HAVE EXPLAINED, SHOULD BE HELPFUL TO THE DEVELOPMENT OF THIS MARKET, HE SAID.
**
$14.2 BILLION SURPLUS IN 1988-89 EXPECTED
THE THE FINANCIAL SECRETARY,
HON PIERS JACOBS, TOLD THE OVERALL SURPLUS LEGISLATIVE COUNCIL TODAY (WEDNESDAY) HE EXPECTED AN IN 1988-89 OF $14.2 BILLION COMPARED WITH A BUDGETTED SURPLUS OF BILLION.
SUBSTANTIAL
SURPLUS, WHICH IS
$5.5
"THIS
MORE CLEARLY
THAN PRODUCT OF SUFFICIENT TO MAINTAIN OUR RESERVES IN REAL TERMS, IS THE
HE PERFORMANCE,
SAID IN THREE YEARS OF EXCEPTIONAL
HIS
BUDGET SPEECH.
ECONOMIC
"
OF OUR TOTAL "BUT IT SHOULD BE SEEN IN THE CONTEXT
$426 ACTIVITY DURING THE YEAR; THE GDP IN 1988 AMOUNTED TO HE NOTED.
MR
ECONOMIC BILLION,
*
SAID JACOBS
THE BE SIGNIFICANTLY HIGHER SOME YEARS EXPENDITURE
ON THE PRESENT STATE OF PUBLIC FINANCES, REVENUE OUTTURN AT THE END OF 1988-89 WOULD THAN FORECAST, WHILE FOR THE FIRST WOULD ALSO EXCEED THE FORECAST,
GENERAL REVENUE ACCOUNT
TIME FOR
EXPENDITURE,
TRANSFERS EXCLUDING
TO
BY ABOUT TWO THE IMPLEMENTATION
FUNDS, OF $43.3 BILLION EXCEEDED THE ORIGINAL ESTIMATE PER CENT THE BULK OF THE INCREASE BEING DUE TO OF THE "RENNIE" REPORT ON PAY FOR THE DISCIPLINED SERVICES.
——
ACCOUNT
THE REVISED ESTIMATE OF EXPENDITURE ON GENERAL REVENUE
ΤΟ FUNDS, WAS CLOSE TO THE OF $49.6 BILLION, INCLUDING TRANSFERS ORIGINAL ESTIMATE.
MR JACOBS SAID EXPENDITURE OF $14.5 BILLION FROM VARIOUS WAS ABOUT 12 PER CENT ABOVE BUDGET.
THIS CONSIDERABLE INCREASE WAS CAUSED LARGELY FINANCIAL ARRANGEMENTS WITH THE HOUSING AUTHORITY,
FUNDS
BY THE REVISED
/OTHER INCREASES ...............