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There will be further improvements in the education programmes, on which the Government proposes to spend $34.5 billion in recurrent expenditure.
There will be major improvements in the medical and health services, on which the Government proposes to spend over $22.6 billion in recurrent expenditure.
There will be major improvements to the social welfare programmes, on which it proposes to spend over $16.5 billion in recurrent expenditure. This will represent an increase of 14.7 per cent in real terms.
"I want to make it absolutely plain to this Council and the community that we are in the fortunate position of being able to make all these improvements to our social welfare, health and educational programmes without breaching our budgetary guidelines.
"Indeed if there had been any danger of breaking our guidelines because of these improvements, we would not have made them," said Mr Tsang.
The new wealth generated by the robust economic performance will fully fund all these new measures, he added.
End
FS outlines "Seven Heavenly Virtues"
The Financial Secretary, Mr Donald Tsang, restates the principles which are the foundations of the management of public revenue: the "seven heavenly virtues".
Mr Tsang said Hong Kong must:
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retain a low, simple and predictable tax regime;
raise sufficient revenue to meet known spending commitments;
maintain a rigorous "user-pays" system for setting fees and charges so as to keep tax rates low;