XN000022-1989-05-10 — Page 4

2

WEDNESDAY, MAY 10, 1989

DID

STILL ON THE SOMEWHAT LARGER CONSOLIDATED SURPLUS, HE SAID

OR

IN TAX

INCREASES CONCESSIONS FURTHER THAT NOT CONSIDER

IN VIEW OF THE NEED ΤΟ EXPENDITURE WERE APPROPRIATE AT THIS TIME AVOID ADDING TO INFLATIONARY PRESSURES.

THE

ON THE VARIANCE BETWEEN

AND THE ESTIMATES

FORECAST THE OF OVER-STATING DANGER

REFERRING TO SOME MEMBERS' COMMENTS

THE REVISED ESTIMATES, ORIGINAL

THERE WAS A OUTTURN. MR JACOBS PROBLEM AND THAT THE FACT WAS THAT SOME VARIATION WAS INEVITABLE.

SAID

SYSTEM FOR THE THE RECORDING OF TRANSACTIONS ON THE HAS A MATERIAL EFFECT

WE "BECAUSE

OPERATE

CASH ACCOUNTING A GOVERNMENT'S ACCOUNTS, THE TIMING OF

FINANCIAL YEAR TOWARDS THE END OF RESULTS.

"FURTHERMORE, BECAUSE MOST

OF OUR REVENUE 18

SOURCES FROM ECONOMIC ACTIVITY, ACTUAL WHICH ARE

INFLUENCED BY SIGNIFICANTLY

то VARY, IN EITHER OUTTURN RECORDED IN A PARTICULAR YEAR IS LIKELY DIRECTION, BECAUSE OF SHORT TERM FLUCTUATIONS IN HONG KONG'S PERFORMANCE, HE EXPLAINED.

|

ECONOMIC

TO SEEK IMPROVEMENTS REASONS MENTIONED, ABSOLUTE

MR JACOBS SAID THE GOVERNMENT CONTINUED IN THE FORECASTING METHODS, BUT FOR THE PRECISION WAS PROBABLY UNATTAINABLE.

0

-

LATEST ECONOMIC INDICATORS CONSISTENT WITH BUDGET FORECAST

ECONOMY

GENERALLY CONSISTENT WITH THE LATEST ECONOMIC INDICATORS ARE THE FORECAST IN THE BUDGET SPEECH THAT THE GROWTH RATE OF THE WOULD SLOW DOWN FURTHER THIS YEAR, AND THAT THE INFLATION BE PUSHED HIGHER BEFORE IT TOO BEGAN TO FALL, PROBABLY IN PART OF THIS YEAR.

RATE MIGHT THE LATTER

JACOBS, SAID THIS IN TODAY LEGISLATIVE COUNCIL

THE FINANCIAL SECRETARY, THE HON PIERS

BUDGET DEBATE RESUMED (WEDNESDAY).

THE

IN THE

MR

JACOBS

SAID ALTHOUGH

NEVERTHELESS

THE LATEST ECONOMIC INDICATORS PLACE ONLY SLOWLY, SUGGESTED THAT THE ADJUSTMENT PROCESS WAS TAKING

CONSISTENT WITH THE WERE INDICATORS

GENERALLY

THE

FORECAST.

DOMESTIC HE SAID THE GROWTH RATES IN REAL TERMS OF HONG KONG'S

AND 34 PER CENT AT ABOUT SIX

PER CENT EXPORTS AND RE-EXPORTS,

SLOWER THAN IN THE LATTER

RESPECTIVELY IN THE FIRST QUARTER, WERE PART OF LAST YEAR.

/"WHILE THE