WEDNESDAY, NOVEMBER 10, 1982
BUDGET DEFICIT THIS YEAR, FS REPORTS
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THERE IS NOW CLEARLY GOING TO BE A BUDGET DEFICIT THIS YEAR BECAUSE OF A PRONOUNCED FALL IN REVENUE FROM LAND SALES, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SAID AT THE LEGISLATIVE COUNCIL TODAY AT THE RESUMED DEBATE ON THE GOVERNOR'S POLICY ADDRESS.
MR BREMRIDGE SAID THAT A DEFICIT WOULD BE TAKEN UP BY HONG KONG'S RESERVES WHICH HE CONSIDERED TO BE SATISFACTORY.
+THAT IS WHAT SAVINGS ARE FOR, AND WE MUST NOT GET EXCITED ABOUT ONE OR POSSIBLY TWO DIFFICULT YEARS, HE STATED.
HE SAID THAT THE LAND SALES COMPONENT OF REVENUE WOULD LIKELY IN FUTURE BE A LESS SIGNIFICANT PART OF TOTAL REVENUE THAN IT HAD BEEN FOR THE PAST SEVEN YEARS.
HE REPORTED THAT HONG KONG'S FISCAL RESERVES NOW TOTAL OVER $22 BILLION WHICH, AFTER ALLOWING CONSERVATIVELY FOR CONTINGENT LIABILITIES, LEAVES FREE RESERVES OF OVER $16 BILLION.
MR BREMRIDGE SAID ALSO THAT THE GOVERNMENT'S TARGET GROWTH IN PUBLIC SECTOR EXPENDITUREFOR FISCAL 1983-84 WILL BE ABOUT 10 PER CENT IN MONETARY TERMS.
HE SAID THAT HE HOPED TO ARRANGE THAT REAL GROWTH IN PUBLIC SPENDING IN THE NEXT FISCAL YEAR WOULD NOT EXCEED WHATEVER MIGHT BE THE EXPECTED GDP GROWTH.
HE ADDED THAT NEVERTHELESS, THERE WOULD BE +NO STRINGENT CUTBACKS, NO STOP AND GO, NO FAILURE TO CONTINUE WITH EXISTING MAJOR PROGRAMMES, NO PETTY MEANNESS+.
SUBJECT TO THE COUNCIL'S APPROVAL, MR BREMRIDGE SAID THAT AT THE BEGINNING OF FISCAL 1983-84, THE GOVERNMENT SHOULD HAVE COMMITMENTS OF ABOUT $25 BILLION IN THE PUBLIC WORKS PROGRAMME FUNDED VIA THE CAPITAL WORKS RESERVE FUND.
THE FIGURE WOULD TAKE INTO ACCOUNT NEW WORKS, INCLUDING LAND ACQUISITION WHOSE COSTS TO COMPLETION IN TODAY'S MONEY WOULD BE AT LEAST $5 BILLION, HE SAID.
AS BEFORE, THE PUBLIC WORKS PROGRAMME, HE SAID, WOULD NOT INCLUDE THE LOW COST PUBLIC HOUSING PROGRAMME.
HE POINTED TO TWO +PRESSING REASONS+ FOR FIRM CONTROL OF THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE IN RELATION TO THE GDP
* THE NEED TO ENSURE THAT THE GOVERNMENT DOES NOT PREEMPT RESOURCES WHICH MIGHT BETTER BE USED
BY THE PRIVATE SECTOR, INCLUDING THE PRODUCTION OF ALL-IMPORTANT EXPORTS.
* BUDGETARY EXIGENCE WHICH HE DESCRIBED AS THE NEED
TO CUT OUR COAT TO SUIT OUR CLOTH+,
/+WHILE WE
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