-
16 -
added.
"Our forecasts assume that this progressive improvement will continue," he
Sir Hamish pointed out that revenue for this financial year was expected to be some $3.1 billion less than the original forecast, owing to main reasons set out as follows:
First, it was estimated that the share of revenue from land premia would be $3.4 billion less than originally forecast. While land prices generally had been in line with expectations, the disposal of a number of sites was deferred until the final quarter of the financial year. Because of the sharing arrangements with the future Special Administrative Region Government, the proceeds from land sold in the final quarter of 1994-95 would not be received until 1995-96.
Secondly, in the original estimate, the Government had anticipated recovering $2.7 billion from the Mass Transit Railway Corporation for works undertaken by the Government in connection with the airport railway. However, this had now been deferred to 1995-96 as a result of the delay in reaching agreement with China on the financing details.
Thirdly, these shortfalls in revenue had been partially offset by higher than expected interest earnings of $1.6 billion on the fiscal reserves as a result of the rise in interest rates.
End/Wednesday, March 1, 1995
Draft expenditure estimates 1995-96
Total government expenditure (excluding payments from the Capital Investment Fund) in 1995-96 will amount to $169.7 billion, an increase of $23.7 billion over the original estimate for 1994-95.
This was announced by the Financial Secretary, the Hon Sir Hamish Macleod, in his Budget Speech delivered today (Wednesday) to the Legislative Council.