XN000022-1990-03-07 — Page 45

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WEDNESDAY, MARCH 7, 1990

FS'S SPEECH ON TV AND RADIO

FOLLOWING IS THE TEXT OF THE BUDGET SUMMARY DELIVERED BY THE FINANCIAL SECRETARY ON TELEVISION AND RADIO STATIONS THIS EVENING:

"LAST OCTOBER, THE GOVERNOR REVEALED AN EXCITING PROGRAMME FOR THE YEARS AHEAD. THIS INCLUDED A NEW INTERNATIONAL AIRPORT AND

AND A MAJOR EXPANSION OF OUR PORT. HE ALSO ANNOUNCED SUBSTANTIAL IMPROVEMENTS IN TERTIARY EDUCATION AND IN MEASURES то PROTECT OUR ENVIRONMENT.

"ALL THIS IS ESSENTIAL TO HONG KONG'S CONTINUING PROSPERITY AND TO THAT LIFESTYLE THAT WE VALUE SO MUCH, THE PROGRAMME UPON WHICH WE ARE EMBARKING IS WITHIN OUR CAPABILITIES BUT WILL REQUIRE FINANCIAL MANAGEMENT OF A HIGH ORDER.

"WHAT I AM SEEKING IN MY BUDGET IS A SOUND BASIS UPON WHICH

WE CAN BUILD FOR OUR FUTURE.

"FIRST, I WOULD LIKE TO SAY A FEW WORDS ABOUT OUR PROGRAMME OF PUBLIC EXPENDITURE. THE COMMUNITY UNDERSTANDABLY EXPECTS THAT GOVERNMENT SERVICES SHOULD BE EXPANDED AND IMPROVED, AND INDEED IN THE COMING YEAR WE PLAN TO DO JUST THAT.

"WE ARE INCREASING THE PROVISION FOR MANY SERVICES THAT WILL BENEFIT OUR COMMUNITY. FOR EXAMPLE, EXPENDITURE ON SOCIAL SERVICES WILL INCREASE BY SOME 17 PER CENT IN REAL TERMS. SOCIAL SERVICES AND EDUCATION TOGETHER WILL ACCOUNT FOR NO LESS THAN 30 PER CENT OF OUR TOTAL BUDGET. AND THERE WILL ALSO BE SIGNIFICANT INCREASES IN OUR SPENDING ON RECREATION AND ON THE ENVIRONMENT.

"BUT WE HAVE TO PLAN OUR EXPENDITURE IN THE CONTEXT OF OUR ECONOMIC PERFORMANCE. IN CONTRAST TO THE AVERAGE DOUBLE DIGIT GROWTH THAT WE HAVE EXPERIENCED OVER THE LAST FEW YEARS, THE ECONOMY GREW BY ONLY TWO AND A HALF PER CENT IN 1989. AT THE SAME TIME, INFLATION WAS UNCOMFORTABLY HIGH.

"THIS YEAR'S ECONOMIC GROWTH IS LIKELY TO BE ONLY MARGINALLY HIGHER THAN IN 1989 BUT I EXPECT A MODEST DECLINE IN INFLATION. AGAINST THIS BACKGROUND, IT IS MORE IMPORTANT THAN EVER THAT ALL OUR PUBLIC SPENDING SHOULD BE CRITICALLY EXAMINED SO THAT WE VALUE FOR MONEY.

GET MAXIMUM

"THIS IS AN ON-GOING TASK. WE HAVE MADE GOOD PROGRESS, THERE IS MORE TO BE DONE.

BUT

MAJOR

BUDGET DECIDED

"WITH ONLY MODERATE GROWTH IN THE ECONOMY AND A PROGRAMME OF EXPENDITURE AHEAD OF US, WE ARE LIKELY TO HAVE A DEFICIT UNLESS I TAKE CORRECTIVE ACTION NOW. I HAVE THEREFORE TO RAISE SOME ADDITIONAL REVENUE. THIS WILL RESULT IN A BALANCED BUDGET FOR THE YEAR.

/"I AM