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Now as our economy progresses and develops in a steady manner, we shouldn't be big spenders. Now you asked when we had to use our reserve. In 1995-96 we have to do it and the sum could be $2.5 billion.
S for Tsy (in Cantonese): In 1995-96, we have a deficit and if you look at the detailed figures then I am sure you are aware of the situation.
The most important reason is because with the MTRC and with the Airport Authority we have to have capital injection and so the reserve is for certain purposes. When we need to develop major infrastructure projects and we need to put in money then this is a source of resources for us.
Question (Hong Kong Daily News) (in Cantonese): You think that the growth rate is going slower and therefore the figure is now revised to $1.6 billion, that is the surplus. And yet when we talk about tax concessions and also new initiatives we are talking about billions. And so how can you persuade the Chinese authorities that you are not spending too much money?
FS (in Cantonese): Well the most important thing is, this is a very balanced budget and we do have a surplus of $1.6 billion and therefore we are not overspending. And if we talk about overspending, then probably we will have a bad deficit but we are not giving a deficit budget and last year we did have a deficit because we had to take care of very major infrastructure projects. So all along we have been taking a very prudent approach.
Now when you talk about tax concessions, yes we feel that we should have tax concessions because there's no reason why we should keep on accumulating surpluses and we do not expect that it will have a very severe inflationary impact then we should return some of the money to our tax payers.
And then of course you can also see that I have also increased some of our taxes. For instance, in relation to hydrocarbon oil, betting duty, tobacco duty etc., and so, by so doing I have the ability to put in the tax concessions. Now this is very important because to the man in the street and also to the tax payers, they feel that tax concessions are important. We have 96% of our salary tax payers benefiting from our tax concessions. Therefore I think it is worth our while and in the end we have a very balanced budget and we have $1.6 billion surplus, so that is not overspending.
Question (Metro Broadcast) (in Cantonese): In formulating this year's Budget, did you consult the Chinese authorities and have their views been taken into consideration?