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He stressed that the Government would never run deficit budgets so as to maintain a flamboyant lifestyle on recurrent spending.
"We believe in small government. Or, to put it another way, we believe in big citizens. We accept that individuals have the main responsibility for managing their own lives," Mr Tsang said.
"The Government's job is to maintain law and order, keep the economic playing field level, ensure fair employment practices, and help the very small minority unable to help themselves."
On control of expenditure. Mr Tsang said prudent control was absolutely critical to Hong Kong's management of public finance and provided a chance of
success.
He said control of government spending was very simple in concept but very difficult in execution and at the end of the day that meant saying no to someone.
With regard to the government's revenue needs, Mr Tsang reiterated the importance of adhering to the seven simple principles of living-within-our-means; maintaining adequate fiscal reserves; maintaining a low, simple and predictable tax regime; maintaining a rigorous user-pays system; combating tax avoidance and tax evasion; providing tax concessions where most needed and avoiding fuelling inflation.
The Administration would defend these budgetary principles with all its might, he said.
End
HK-China officials discuss water supply issues
At the invitation of the Secretary for Works, Mr H S Kwong, a delegation from the Guangdong Provincial Bureau of Water Conservancy led by Director, Mr Guan Zongzhi, visited Hong Kong during June 24-29 for the seventh business meeting to discuss water supply to Hong Kong under the Dongjiang-Shenzhen Water Supply Works.
Items discussed included a review of water supply in the 1995 water year, the plan for water supply in the 1996 water year, water prices from January 1, 1997, to December 31, 1999, Hong Kong's future water demand from the East River, quality of the water supply and other matters of mutual concern.