XN000022-1992-03-04 — Page 17

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WEDNESDAY, MARCH 4, 1992

"MY PACKAGE OF REVENUE MEASURES WILL GENERATE

ESTIMATED REVENUE OF $1.1BILLION, BRINGING THE TOTAL 1992-93 TO $5.1BILLION, EXCLUDING BORROWINGS.

"OUR

FORECASTS

INDICATE THAT

AFTER

TAKING

SURPLUS

NET ADDITIONAL

FOR

THE

ADDITIONAL

THE

REVENUE INTO ACCOUNT, THE RESERVES WILL STAND AT $71.6BILLION AT

HE SAID. END OF MARCH 1997, INCLUDING BORROWINGS OF $4.8 BILLION,

H

UNDER

THIS WOULD ALLOW THE GOVERNMENT TO MEET ITS COMMITMENTS THE MEMORANDUM OF UNDERSTANDING WHILE MAINTAINING A REASONABLE CUSHION AGAINST THE CONTINGENCIES OF THE NEXT FIVE YEARS.

SUBSIDIARY

MACLEOD MR

SAID IT WOULD HAVE THE ADDITIONAL

STRENGTH AND ADVANTAGE THAT THIS EVIDENCE OF CONTINUING FINANCIAL PRUDENCE SHOULD DO MUCH TO REASSURE POTENTIAL LENDERS AT A TIME THE GOVERNMENT SHOULD BE FINANCING OUR INFRASTRUCTURAL DEVELOPMENT.

WHEN

WOULD BENEFIT

MOREOVER, HE SAID HONG KONG'S FINANCES IN 1997 FROM THE HONG KONG SPECIAL ADMINISTRATIVE REGION GOVERNMENT LAND FUND.

"THIS RECEIVES AND MANAGES THE SHARE OF LAND SALE REVENUE WHICH

HE SAID. IS SET ASIDE FOR THE FUTURE SAR GOVERNMENT,

HONG KONG THIS FUND WAS NOT INCLUDED IN THE ACCOUNTS OF THE

ADMINISTRATION'S FISCAL GOVERNMENT BUT WOULD BECOME PART OF THE NEW RESERVES IN 1997.

THE AT THE END OF MARCH 1991, THE LAND REVENUE TRANSFERRED TO FUND TOTALLED $20.3 BILLION. THE FORECAST WAS THAT IT WOULD RECEIVE A FURTHER $7.4 BILLION FOR 1991-92 AND $8 BILLION IN 1992-93.

SAID

IF THESE FORECASTS WERE ACHIEVED, MR MACLEOD WOULD HAVE RECEIVED $35.7 BILLION BY THE END OF MARCH 1993, INTEREST EARNED.

IN

HE SAID THE FUND

WOULD

THE FUND EXCLUDING

FURTHER, ITS

YEARS,

INCREASE FUTURE THROUGH ITS SHARE OF REVENUE FROM LAND SALES AND THE RETURNS FROM INVESTMENTS.

THE

FS EXPLAINS THE SHAPING OF REVENUE PROPOSALS

FINANCIAL

* * *

THE SECRETARY,

THE

TODAY

HON HAMISH MACLEOD,

THAT IN SHAPING HIS THE LEGISLATIVE COUNCIL (WEDNESDAY) SAID IN REVENUE PROPOSALS, HE HAD NOT FOCUSSED EXCLUSIVELY ON

NEED TO RAISE MORE REVENUE, HE HAD TAKEN INTO ACCOUNT THE NEED TO REDUCE KONG'S DEPENDENCE ON RELATIVELY VOLATILE SOURCES OF REVENUE.

HONG

HE KAD ALSO SELECTED TAX

PRESENTING HIS 1992-93 BUDGET, MR MACLEOD SAID SOUGHT NOT TO ADD TO INFLATION, AND THROUGH CAREFULLY CONCESSIONS, TO PROVIDE A MEASURE OF RELIEF TO THE ORDINARY TAXPAYER.

/"THE OVERALL