XN000022-1989-03-01 — Page 35

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WEDNESDAY, MARCH 1, 1989

29

中心

"MY PROPOSALS HAVE BEEN CONSCIOUSLY FRAMED WITH DUE THE RISKS INVOLVED, AND I DO NOT BELIEVE THAT

REGARD SIGNIFICANTLY TO INFLATION,

THIS BUDGET WILL MR JACOBS SAID.

TO ADD

THE PROPOSED REDUCTIONS IN THE RATES PROFITS TAX WOULD RESTORE HONG KONG TO

OF SALARIES TAX AND THE FIVE YEARS AGO WHEN THE RATES HAD TO BE RAISED IN THE FACE OF A

POSITION WHICH OBTAINED SLOWDOWN IN THE ECONOMY, HE SAID.

SHARP

STEADILY AND WITHOUT

"THE RESTORATION HAS BEEN ACHIEVED DISTURBING THE STABILITY OF OUR PUBLIC FINANCES," MR JACOBS SAID.

ON EXPENDITURE, HE STRESSED THAT SECTOR MUST NOT BE REVENUE LED.

"WE SHOULD NOT SPEND MORE SIMPLY MORE. THE PRINCIPAL CONSIDERATION MUST MAINTAIN A PROPER RELATIONSHIP OVER TIME AND THE PERFORMANCE OF THE ECONOMY.

"THERE MAY BE OCCASIONS WHEN THE

CAN BE JUSTIFIED.

GUIDELINES

ACTIVITIES IN THE PUBLIC

BECAUSE WE HAVE COLLECTED BE ΤΟ ESTABLISH AND THEN BETWEEN PUBLIC EXPENDITURE

BREACHING

OF OUR BUDGETARY

"SOME ARGUE THAT THE PUBLIC SECTOR'S SHOULD BE INCREASED TO PROVIDE THE KIND OF IN SERVICES THAT OUR ECONOMY NOW EXPECTS,

SHARE OF THE ECONOMY QUALITATIVE IMPROVEMENTS

BE INCREASED ΤΟ OF THE PRIVATE SECTOR

"BUT THE PUBLIC SECTOR SHARE OF GUP MUST NOT THE POINT WHERE THE WEALTH-PRODUCING CAPACITY IS SERIOUSLY IMPAIRED.

TO

A CHANGE IN WE FACE,"

"I MENTION THIS MATTER NOT AS A PRECURSOR BUDGETARY POLICY, BUT AS AN INDICATION OF THE PROBLEM THAT HE SAID.

MR JACOBS SAID IT WAS CLEAR THAT IN ORDER TO PROVIDE FOR NEW OR IMPROVED SERVICES, IT

RESOURCES WAS NECESSARY VIGOROUS IN ATTACKING BASELINE EXPENDITURE.

то BE INCREASINGLY

MAXIMUM USE OF

"IN OTHER WORDS, WE MUST ENSURE THAT WE MAKE THE REDEPLOYMENT OF EXISTING RESOURCES IN ORDER TO ACHIEVE THE AND QUALITY OF SERVICES THAT ARE NEEDED TODAY AND IN THE SAID.

NATURE

FUTURE, HE

MR JACOBS SAID THAT DIRECT TAXATION RATES WERE BACK THEY WERE BEFORE HONG KONG FACED A DEFICIT IN PUBLIC FINANCES,

ΤΟ WHERE

MAINTAINED,

AND

"OUR PROGRAMME OF PUBLIC EXPENDITURE HAS BEEN WE HAVE BEGUN TO SET ASIDE FUNDS TOWARDS INFRASTRUCTURAL PROGRAMME THAT IS VITAL TO OUR FUTURE ECONOMIC GROWTH. THE CONSIDERABLE

DESIGNED TO PROMOTE DEVELOPMENT OF

"I HAVE PROPOSED OTHER TAXATION MEASURES INVESTMENT AND TO STIMULATE AND ENCOURAGE FURTHER THE HONG KONG AS A FINANCIAL CENTRE AND CAPITAL MARKET.

"THIS IS A BUDGET WHICH I CAN COMMEND ΤΟ THIS JACOBS CONCLUDED.

COUNCIL," MR

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