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Supplementary Appropriation (1994-95) Bill 1995
Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the second reading of the Supplementary Appropriation (1994-95) Bill 1995 in the Legislative Council today (Wednesday):
Mr President,
I move that the Supplementary Appropriation (1994-95) Bill 1995 be read the second time.
Section 9 of the Public Finance Ordinance states that "If at the close of account for any financial year it is found that expenditure charged to any head is in excess of the sum appropriated for that head by an Appropriation Ordinance, the excess shall be included in a Supplementary Appropriation Bill which shall be introduced into the Legislative Council as soon as practicable after the close of the financial year to which the excess expenditure relates".
The accounts for the financial year 1994-95 have been finalised by the Director of Accounting Services. The expenditure charged to 67 heads out of a total of 80 heads is in excess of the sum appropriated for those heads in the Appropriation Ordinance 1994. This is because sufficient offsetting savings could not be found within the heads concerned. In accordance with section 9 of the Public Finance Ordinance, this excess has been included in the Supplementary Appropriation (1994- 95) Bill 1995 now before Members. The Bill seeks to give final legislative authority for the amount of supplementary provision approved in respect of particular heads of expenditure by the Finance Committee or under powers delegated by it.
The total supplementary appropriation required in respect of the 67 heads of expenditure is $18,589.8 million. This excess is largely attributable to increased requirements for transfers to the Loan Fund ($7,000.0 million) and the Civil Service Pension Reserve Fund ($7,000.0 million) offset partly by a reduced transfer to the Capital Investment Fund ($2,000.0 million). Other major contributing factors include the implementation of the 1994 pay adjustment in respect of the Civil Service and Government subvented organisations ($5,241.1 million), the increased expenditure under the comprehensive social security assistance and social security allowance schemes ($623.8 million), and additional expenditure on pension payment ($258.0 million).