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WEDNESDAY, MARCH 3, 1993
"THE INCREASE IS NOT LARGE, BEARING IN MIND ALSO THAT ANNUAL GOVERNMENT SPENDING WILL TOTAL AROUND $200 BILLION BY THAT DATE. I DO NOT THEREFORE REGARD RESERVES OF $78 BILLION AS EXCESSIVE,
++
HE SAID.
MR MACLEOD REITERATED THAT HE PLACED GREAT IMPORTANCE ON THE NEED TO RETAIN ADEQUATE RESERVES. THESE WERE NECESSARY NOT ONLY TO MAINTAIN A REASONABLE CUSHION AGAINST ANY CONTINGENCIES IN THE NEXT FEW YEARS BUT ALSO TO MEET THE COMMITMENT UNDER THE MEMORANDUM OF UNDERSTANDING.
HE SAID THE SORT OF CONTINGENCIES AGAINST WHICH THE RESERVES MUST INSURE, INCLUDED :
*
ABRUPT CHANGES IN WORLD POLITICAL AND ECONOMIC CONDITIONS TO WHICH HONG KONG WAS VULNERABLE BECAUSE OF ITS OPEN ECONOMY AND TOTAL DEPENDENCE ON SELLING ITS GOODS AND SERVICES ABROAD.
ALTHOUGH HONG KONG HAD VERY ROBUST GROWTH PROSPECTS FOR THE REST OF THE DECADE, THE GOVERNMENT CANNOT PREDICT OR CONTROL FUTURE EVENTS. NON-RENEWAL OF MFN STATUS FOR CHINA, FOR EXAMPLE, WOULD HAVE SERIOUS CONSEQUENCES.
A SLOWDOWN IN THE ECONOMY WOULD REDUCE GOVERNMENT REVENUES, THUS THREATENING OUR ABILITY TO MAINTAIN GOVERNMENT SPENDING
PROGRAMMES.
HEALTHY RESERVES MEAN THAT A SUDDEN REVERSAL IN THE ECONOMIC FORTUNES WILL NOT CAUSE SHARP CUTS IN THE PROVISION SERVICES AND THE SUSPENSION OF VITAL INVESTMENT PROJECTS THE PUBLIC SECTOR.
OF
IN
0
LEGCO'S ADVICE A MAJOR INPUT
OF THE
MORE THAN EVER BEFORE, THE ADVICE AND CRITICISMS LEGISLATIVE COUNCILLORS HAVE BEEN A MAJOR INPUT INTO THE BUDGET, FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).
11
"I WILL CONTINUE CONSULTATION WITH MEMBERS FOR FUTURE BUDGETS, HE SAID IN SUMMING UP HIS 1993/94 BUDGET PRESENTATION IN THE COUNCIL LEGISLATIVE.
MR MACLEOD ALSO MADE THESE POINTS ABOUT HIS BUDGET:
THE BUDGET HAS IDENTIFIED THE POTENTIAL FOR AN INCREASED ROLE FOR THE PRIVATE SECTOR IN EXPANDING
ABILITY ΤΟ COMPLETE
BUDGET.
MAJOR PROJECTS ON
THE GOVERNMENT'S TIME AND WITHIN
1*
IT HAS