WEDNESDAY, MARCH 2, 1994
18
THREE POINTS ON BUDGET STRATEGY
* * *
ON BUDGET STRATEGY, THE FINANCIAL SECRETARY, THE HON SIR HAMISH MADE: EXERCISING MACLEOD, SAID THREE PARTICULAR POINTS NEEDED TO BE
AND AVOIDING CONSTRAINTS ON SPENDING, MAINTAINING ADEQUATE RESERVES INFLATION.
MUST RECOGNISE THAT SIR HAMISH SAID: "THE FIRST IS THAT WE THERE ARE ECONOMIC AS WELL AS FINANCIAL LIMITS TO WHAT THE GOVERNMENT SHOULD SPEND. HONG KONG'S ECONOMY HAS THRIVED BECAUSE WE BELIEVE PRIVATE ENTERPRISE AND SMALL GOVERNMENT.
IN
HAVE THE "ONLY IN THIS WAY CAN WE ENSURE THAT BUSINESS WILL
I AM FREEDOM AND THE OPPORTUNITY TO GENERATE THE WEALTH WE NEED.
WE HAVE NOT CONVINCED THAT A MAJOR REASON FOR OUR SUCCESS IS THAT
IT. SUCCUMBED TO THE TEMPTATION TO SPEND MONEY SIMPLY BECAUSE WE HAVE
NO FASTER INSTEAD, WE HAVE MADE SURE THAT GOVERNMENT SPENDING GROWS THAN THE ECONOMY AS A WHOLE.
IS
"THE RESULT IS PLAIN TO SEE.
THE PROPORTION OF GDP THAT IS
IN HONG KONG, PUBLIC
TYPICAL
OF OTHER
EXPENDITURE ADVANCED
HALF ECONOMIES.'
++
SIR HAMJSEL SAID RESOURCES WERE LEFT AS FAR AS POSSIBLE IN PRIVATE SECTOR, WHERE THEY COULD BE MOST PRODUCTIVELY EMPLOYED.
+
THE
IN HONG KONG, WE HAVE A LONG RECORD OF BRINGING PRIVATE SECTOR
INTO CAPITAL
PLAY LOAN
IN OR
OUR MAJOR INFRASTRUCTURAL
EQUITY PROJECTS.
"THE
VALUE OF THIS PRIVATE SECTOR INVESTMENT IN HONG KONG, TERMS OF SAVING PUBLIC RESOURCES, HAS BEEN ENORMOUS.
"THREE
MAJOR TUNNELS,
IN
THE
TAKE
ΤΟ
TODAY'S BILLION
TUNNEL, THE FIRST CROSS-HARBOUR
WOULD CROSSING, TATE'S CAIRN TUNNEL AND THE EASTERN HARBOUR SOMETHING IN THE ORDER OF $12 BILLION TO BUILD IN TODAY'S DOLLARS. BUILD THE EXISTING MTR SYSTEM WOULD TAKE ABOUT $68 BILLION IN DOLLARS, AND OUR EXISTING CONTAINER PORTS WOULD COST SOME $30 TO BUILD.
**WHAT THESE
UNLIKE MANY OTHER FIGURES DEMONSTRATE IS THAT,
BUDGETARY SOCIETIES, BOTH ASIAN AND WESTERN, WE HAVE FOUND THE RIGHT
SOCIAL SERVICE EXTENSIVE BALANCE. WE HAVE BEEN ABLE TO FUND OUR PROGRAMMES WITHOUT A MASSIVE PUBLIC SECTOR AND CRIPPLING TAXATION.
ONE
OF
THE I AM RECURRENT WE HEAR WE SHOULD DEEPER INTO HIS
"LIKE THE
I FULLY ACCEPT WELFARE AS COMMUNITY, GOVERNMENT'S PRIMARY OBLIGATIONS. BUT ALSO LIKE THE COMMUNITY,
OF CONTROL VERY CONSCIOUS OF THE NEED TO MAINTAIN TIGHT EXPENDITURE. IT IS THE TAXPAYER WHO FOOTS THE BILL. WHEN CALLS FOR 'THE GOVERNMENT TO CONTRIBUTE', THE REAL MEANING, NEVER
IS A DEMAND FOR THE TAXPAYER TO DIG FORGET, POCKETS."
ABOUT
THE FINANCIAL SECRETARY SAID THE SECOND IMPORTANT POINT THE BUDGET STRATEGY WAS THAT HONG KONG MUST MAINTAIN ADEQUATE RESERVES
COMMITMENTS AND TO MEET [TS UNCERTAINTIES.
KNOWN
TO
GUARD
AGA INST FUTURE
/"PUTTING ASIDE
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