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Transcript of FS's press conference
Following is the transcript of the Budget press conference held by the Financial Secretary, Mr Donald Tsang, today (Wednesday):
FS (in Cantonese): Thank you. I have been speaking for two hours and some of you had the opportunity to read the Budget Speech starting from noon today.
May I just give you a number of salient points in the Budget.
First in 1996-97, we expect the growth rate to be 5% and the inflation rate would drop to 7.5% and then in 1995-96 we will have a deficit which is $2.5 billion and in 1996-97 this will disappear. We hope to be able to achieve an even budget and with a small surplus, around $1.6 billion.
And in relation to expenditure I have said very clearly that the Governor's pledges in the Policy Address about CSSA will all be funded and that will be $300 million and apart from that I have put in an additional $200 million and there will be $300 million for retraining and $39 million for Education Commission Report No. 6 proposals and $50 million for the Services Support Fund and another $50 million for the Tourism Development Fund and in relation to the small and medium sized property, there will be a reduction in stamp duty.
As for profits tax, there's been some adjustment in order to increase the competitiveness of the financial sector.
And for the service sector I've also got an addendum on that and there will be Action Agendas and that's an important proposal and we have already commissioned Federal National Mortgage Association a very big mortgage corporation in the US to try and help us with the study of the setting up of a mortgage corporation in Hong Kong and we are now planning to have a Science Park and a fourth industrial estate and a second industrial technology centre.
And so that briefly is what I wish to say. I will be delivering what I have just said in English and then I will give you a chance for questions.
You have been listening to me for two hours in the Legislative Council and some of you might have also had a chance to look at the Budget in greater detail in the 'lock-up' session. I think some of you participated in that.