WEDNESDAY, MARCH 31, 1993
PENSIONS ARE ALSO A STATUTORY CHARGE ON RECURRENT EXPENDITURE.
"MOREOVER, I FIND IT INCONCEIVABLE THAT ANY GOVERNMENT OF THIS TERRITORY WOULD BE UNABLE TO MEET THE ANNUAL COSTS OF PENSIONS WHICH ARE PROJECTED TO REMAIN AT ONLY ABOUT 5% OF RECURRENT EXPENDITURE.'
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HOWEVER, THE GOVERNMENT HAS ALREADY RESPONDED то CONCERNS VOICED ON THIS SUBJECT BY HAVING A FURTHER LOOK AT A PROPOSAL TO SET UP A PARTIAL PENSION FUND.
"WE HAVE TO EXAMINE THE SIZE, SCOPE AND MEANS OF OPERATION OF ANY SUCH FUND AND THE FINANCIAL IMPLICATIONS FOR THE HONG KONG GOVERNMENT AND THE FUTURE SPECIAL ADMINISTRATIVE REGION GOVERNMENT.
IT WOULD BE NECESSARY TO DISCUSS THIS MATTER FURTHER WITH THE CHINESE SIDE IN THE JOINT LIAISON GROUP. AND A DECISION ON WHETHER TO SET UP SUCH A FUND WILL BE POSSIBLE ONLY BY THE END OF 1994, HE SAID.
"BUT LET ME ASSURE YOU THAT WE ARE APPROACHING THIS ISSUE IN A SINCERE MANNER AND WITH AN OPEN MIND.
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ON THE RESERVES, MR MACLEOD REMINDED THOSE WHO WERE WORRIED THE FORECAST RESERVES THAT THE FIGURE FOR 1996/97 WAS ONLY PART OF THE PICTURE.
IN MID-1997, THERE WILL BE A CONSIDERABLE INCREASE IN THE RESERVES WHEN THE BALANCE IN THE LAND FUND IS TRANSFERRED то THE SAR GOVERNMENT.
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NOTE THAT A SENIOR CHINESE OFFICIAL HAS RECENTLY FORECAST THAT THE LAND FUND WOULD BY THEN BE IN THE REGION OF $70-80BILLION. THUS, THE RESERVES IN 1997 WOULD BE ROUGHLY DOUBLE MY FORECAST, THIS IS TAKEN INTO ACCOUNT, HE SAID.
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FS EXPLAINS ASSESSMENT IN PUBLIC EXPENDITURE GROWTH
THE FULL PLANNING CYCLE HAS TO BE LOOKED AT WHEN ASSESSING WHETHER THE GROWTH IN PUBLIC EXPENDITURE IS IN LINE WITH THE GROWTH OF THE ECONOMY, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
"WE CANNOT LOOK SIMPLY AT 1993/94 AS COMPARED WITH THE PREVIOUS YEAR. THIS IS PARTICULARLY SO IF THERE HAS BEEN UNDERSPENDING ON CAPITAL WORKS, AS THERE WAS IN 1992/93.
"WE
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HAVE TO LOOK AT THE FULL PLANNING CYCLE, MR MACLEOD SAID IN THE RESUMED BUDGET DEBATE.
THE STARTING POINT FOR THE CURRENT PLANNING CYCLE IS MID-1990.
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I WOULD ALSO LIKE TO REASSURE THOSE WHO ARE CONCERNED THAT MAY HAVE DIFFICULTY IN GETTING BACK TO SURPLUS BUDGETS AFTER 1997."
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