XN000022-1989-03-01 — Page 14

WEDNESDAY, MARCH 1, 1989

8

MARKET

FISCAL WE

"OUR POLICY HAS ALWAYS BEEN TO LEAVE THE INITIATIVE

BUT WHERE DEVELOPMENT TO THOSE WHO DEAL IN THE MARKET ITSELF. OR INSTITUTIONAL FACTORS ARE IDENTIFIED AS INHIBITING DEVELOPMENT, ARE PREPARED TO CONSIDER APPROPRIATE MODIFICATIONS.

"THIS POLICY REMAINS UNCHANGED. THE UNDER-DEVELOPED STATE OF

SOME MARKET THE HONG KONG DOLLAR PAPER MARKET HAS BEEN ATTRIBUTED BY PARTICIPANTS NOT ONLY TO THE LACK OF GOVERNMENT DEBT BUT ALSO INCIDENCE OF INTEREST TAX.

TO THE

"THE ISSUE OF EXCHANGE FUND BILLS, AS I HAVE EXPLAINED, SHOULD BE HELPFUL TO THE DEVELOPMENT OF THIS MARKET, HE SAID.

**

$14.2 BILLION SURPLUS IN 1988-89 EXPECTED

THE THE FINANCIAL SECRETARY,

HON PIERS JACOBS, TOLD THE OVERALL SURPLUS LEGISLATIVE COUNCIL TODAY (WEDNESDAY) HE EXPECTED AN IN 1988-89 OF $14.2 BILLION COMPARED WITH A BUDGETTED SURPLUS OF BILLION.

SUBSTANTIAL

SURPLUS, WHICH IS

$5.5

"THIS

MORE CLEARLY

THAN PRODUCT OF SUFFICIENT TO MAINTAIN OUR RESERVES IN REAL TERMS, IS THE

HE PERFORMANCE,

SAID IN THREE YEARS OF EXCEPTIONAL

HIS

BUDGET SPEECH.

ECONOMIC

"

OF OUR TOTAL "BUT IT SHOULD BE SEEN IN THE CONTEXT

$426 ACTIVITY DURING THE YEAR; THE GDP IN 1988 AMOUNTED TO HE NOTED.

MR

ECONOMIC BILLION,

*

SAID JACOBS

THE BE SIGNIFICANTLY HIGHER SOME YEARS EXPENDITURE

ON THE PRESENT STATE OF PUBLIC FINANCES, REVENUE OUTTURN AT THE END OF 1988-89 WOULD THAN FORECAST, WHILE FOR THE FIRST WOULD ALSO EXCEED THE FORECAST,

GENERAL REVENUE ACCOUNT

TIME FOR

EXPENDITURE,

TRANSFERS EXCLUDING

TO

BY ABOUT TWO THE IMPLEMENTATION

FUNDS, OF $43.3 BILLION EXCEEDED THE ORIGINAL ESTIMATE PER CENT THE BULK OF THE INCREASE BEING DUE TO OF THE "RENNIE" REPORT ON PAY FOR THE DISCIPLINED SERVICES.

——

ACCOUNT

THE REVISED ESTIMATE OF EXPENDITURE ON GENERAL REVENUE

ΤΟ FUNDS, WAS CLOSE TO THE OF $49.6 BILLION, INCLUDING TRANSFERS ORIGINAL ESTIMATE.

MR JACOBS SAID EXPENDITURE OF $14.5 BILLION FROM VARIOUS WAS ABOUT 12 PER CENT ABOVE BUDGET.

THIS CONSIDERABLE INCREASE WAS CAUSED LARGELY FINANCIAL ARRANGEMENTS WITH THE HOUSING AUTHORITY,

FUNDS

BY THE REVISED

/OTHER INCREASES ...............