2 -
The first principle is that for the short term, i.c. the 96-97 Budget, we must have a balanced budget because we had a deficit in 1995-96. Two consecutive years of budget deficit might hit the confidence of the people in Hong Kong and also international investors albeit psychologically, and therefore it is essential that we have a balanced budget for 96-97.
The second principle is in the medium term the target is to ensure a smooth transition. In other words we can't really look at this year's Budget in isolation and ignore the importance of a smooth transition. And this has been accepted by the DB Chairmen and it is as important as a balanced budget.
And then the third principle, we must also plan on a long term basis. In other words, what is our direction, how do we try and face the new millennium? And we have big changes in the market and we have changes in our economic structure and in the business sector we have got some new changes coming in and the Government will have to respond. And one-third of my Budget actually covered that question. And it seems as if the response has been very good and they accept the proposals. And so initially, I am quite satisfied with this.
But of course a day has passed and you have read more carefully all the different documents and I am sure you will have more in depth questions and probably I might not be able to answer all those questions so well, and so I have got with me all the experts and they will be able to help us.
I do not want to bore you again to say the same thing in English. But what I have just said, in summary, is that I am quite gratified and encouraged by the initial response; the response given by the community as a whole, in general, and the District Boards and the Municipal Councils' Chairmen whom I met this morning in particular, to my Budget. The response of the Legislative Councillors, so far, is balanced as well.
I am looking forward to a very useful dialogue in the coming three weeks before the vote is taken on the Budget and I am very glad, in particular, that there seems to be a general agreement on the three objectives that my colleagues and I set out to achieve.
The short term one of a balanced budget; a medium term one of making sure the Budget will help to ensure a smooth transition, will complement our other works on creating a smooth transition across 1997; and we must have a longer term vision in the Budget, being the longer term objective. These three objectives seem to have struck a common chord among all the interlocutors I have met so far.