WEDNESDAY, MARCH 2, 1994
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FS OUTLINES MEDIUM RANGE FORECAST
HONG KONG'S FISCAL RESERVES WILL STAND AT AN IMPRESSIVE $120 BILLION ON MARCH 31, 1997, THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID IN HIS MEDIUM RANGE FORECAST FOR THE FIVE-YEAR PERIOD ENDING 1997/98 TODAY (WEDNESDAY).
SIR
MOVING THE SECOND READING OF THE APPROPRIATION BILL 1994, HAMISH SAID: "THIS IS A DRAMATIC INCREASE OVER THE FIGURE OF $78 BILLION WHICH I FORECAST IN MY BUDGET LAST YEAR.
AN ACHIEVEMENT -
"THIS $120 BILLION IS ALL THE MORE REMARKABLE WHEN YOU REMEMBER THAT IT TAKES INTO ACCOUNT BOTH THE SPENDING PROPOSALS AND THE TAX CONCESSIONS I HAVE ANNOUNCED TODAY.
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'AND IT ALSO FULLY ALLOWS FOR THE PROPOSED ADDITIONAL EQUITY INJECTION INTO THE AIRPORT CORE PROGRAMME, AND EXPLAINS MY WILLINGNESS TO MAKE SUCH A LARGE INVESTMENT.'
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IN ACCORDANCE WITH NORMAL PRACTICE, THE FORECAST COVERS THE CURRENT FINANCIAL YEAR, THE ESTIMATES YEAR, AND THREE FURTHER YEARS.
"HENCE, MY FORECAST WILL FOR THE FIRST TIME INCLUDE THE 1997/98 FINANCIAL YEAR, A PERIOD MOST OF WHICH FOLLOWS THE TRANSFER OF SOVEREIGNTY," HE SAID.
"I SHOULD
TODAY SOLELY TO
PLANNING.
GOVERNMENT.
IT IN
EMPHASISE THAT THIS IS A FORECAST ONLY, PRESENTED PROVIDE THE APPROPRIATE CONTEXT FOR HONG KONG'S NO WAY IMPOSES ANY COMMITMENT ON THE FUTURE SAR
NOTING THAT TWO DIFFERENT FACTORS WERE AT WORK FOR THE MEDIUM RANGE FORECAST, SIR HAMISH SAID: "FIRST, REVENUES HAVE BEEN BUOYANT OVER THE PAST THREE YEARS. AND REVENUE FORECASTS HAVE BEEN INCREASED TO REFLECT THIS.
"SECONDLY, ON THE EXPENDITURE SIDE, THE FORECAST REFLECTS A MORE REALISTIC ESTIMATE OF OUR CAPACITY ON PUBLIC WORKS.
"
HE FORECAST THAT HONG KONG WOULD ADD $7.7 BILLION TO ITS FISCAL RESERVES IN 1994/95.
** THROUGHOUT THE FORECAST PERIOD, WE SHALL CONTINUE TO SEE A HEALTHY SURPLUS ON THE OPERATING ACCOUNT," HE SAID.
"HOWEVER, IN 1995/96 AND 1996/97, WE ARE FORECAST TO DRAW ON OUR RESERVES TO TAKE ACCOUNT OF AN INCREASING SPENDING CAPACITY ON PUBLIC WORKS, AS WELL AS INCREASED INVESTMENT IN OUR PHYSICAL INFRASTRUCTURE, INCLUDING MOST NOTABLY THE AIRPORT CORE PROGRAMME.”
MOVING TO THE LAST YEAR OF THE FORECAST, NAMELY 1997/98, SIR HAMISH SAID THE MEDIUM TERM FORECAST PREDICTED AN OVERALL SURPLUS FOR THE YEAR OF $21 BILLION.
/HE SAID