XN000022-1974-02-27 — Page 10

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Wednesday, February 27, 1974

567 MILLION DEFICIT FORECAST IN 1974/75 BUDGET

A deficit of more than $67 million is forecast in the draft

Estimates of general revenue and expenditure for the new financial year

starting April 1, 1974.

The new budgeted deficit is based on the 1974/75 estimated

general revenue and expenditure which do not include estimates of the

Hong Kong Housing Authority and the Urban Council, both of which are now

financially autonomous.

If the reimbursements of the Mass Transit Railway Corporati

various revenue proposals the Financial Secretary announced in his

budget speech and other known expenditure commitments are taken into account,

the forecast is for a small surplus of $20 million.

It is estimated that general revenue will continue to grow in

the coring financial year to reach 35,679 million -- $957 million more

than the original 1973/74 estimate.

Most of it will come from internal revenue which is shown in the

draft Estimates to yield $2,331 million. Internal revenue includes earnings

and profits tax, bets and sweeps tax, estate duty and stamp duties.

Land sales are shown to bring in an estimated $459 million,

dutios $485 million, postal services $184 million, airport and air services

$195 million, Kowloon-Canton Railway $372 million, and general rates

$395 million.

/In the

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