8
דד
WEDNESDAY, MARCH 7, 1990
A TOTAL OF $17.7 BILLION WOULD BE
TRANSFERRED
REVENUE ACCOUNT TO THE FUNDS, IN LINE WITH THE ESTIMATE.
FROM GENERAL
"OF THIS, $7 BILLION WILL BE TRANSFERRED TO THE DEVELOPMENT LOAN FUND IN LINE WITH MY INTENTION, STATED IN MY LAST BUDGET SPEECH, OF SETTING ASIDE FUNDS TO MEET EXPENDITURE ON MAJOR INFRASTRUCTURAL WORKS. THESE TRANSFERS DO NOT, OF COURSE, AFFECT THE OVERALL SURPLUS." HE SAID.
SIR PIERS SAID HE WOULD INTRODUCE A RESOLUTION INTO THE COUNCIL NEXT WEEK TO SET UP A CAPITAL INVESTMENT FUND TO SERVE, WITH THE CAPITAL WORKS RESERVE FUND, AS A VEHICLE FOR FUNDING EXPENDITURE ON CAPITAL PROJECTS.
"THE NEW FUND WILL PROVIDE THE GOVERNMENT'S FINANCIAL CONTRIBUTION TO PROJECTS OUTSIDE THE PUBLIC WORKS PROGRAMME, SUCH AS THE NEW AIRPORT. WHEN THE FUND IS ESTABLISHED ON APRIL 1 IT WILL TAKE OVER THE BALANCE OF THE DEVELOPMENT LOAN FUND," HE SAID.
SIR PIERS POINTED OUT THAT ALTHOUGH EXPENDITURE FROM GENERAL REVENUE ACCOUNT WAS EXPECTED TO BE CLOSE TO THE ESTIMATE, IT SHOULD BE NOTED THAT THE GROWTH RATE OF THIS RECURRENT EXPENDITURE WAS HIGHER THAN THAT OF GDP.
"FURTHERMORE, CAPITAL EXPENDITURE FROM THE FUNDS WILL SUBSTANTIALLY EXCEED BUDGET. THE INCREASE IN CONSOLIDATED PUBLIC SECTOR EXPENDITURE OF 13 PER CENT OVER 1988-89 WILL BE WELL ABOVE THE TREND GDP GROWTH RATE OF SIX PER CENT ASSUMED LAST YEAR.
"CONSOLIDATED PUBLIC SECTOR EXPENDITURE IS EXPECTED TO REPRESENT ABOUT 17 PER CENT OF GDP, COMPARED WITH OUR EARLIER ESTIMATE OF 16.4 PER CENT, HE SAID.
SIR PIERS SAID THAT NOTWITHSTANDING THIS SUBSTANTIAL GROWTH PUBLIC EXPENDITURE, HONG KONG'S FISCAL POSITION WAS SATISFACTORY PRESENT.
IN
AT
BILLION
"WE SHALL BE ENDING THE YEAR WITH A SURPLUS OF ABOUT $9 AND THIS WILL TAKE OUR ACCUMULATED RESERVES TO JUST UNDER $71 BILLION.
"THE OPERATING SURPLUS WILL BE SUFFICIENT TO COVER MORE THAN 50 PER CENT OF OUR CAPITAL EXPENDITURE. BUT WE REMAIN EXCESSIVELY DEPENDENT ON REVENUE FROM DIRECT TAXES AND WE ARE THUS VULNERABLE ΤΟ ANY DOWNTURN IN THE PERFORMANCE OF THE ECONOMY IN FUTURE," HE SAID.
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