XN000022-1993-03-03 — Page 39

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WEDNESDAY, MARCH 3, 1993

HE SAID THE MEDIUM RANGE FORECAST TO 1996/97 DEMONSTRATED THE PLANS FOR THE FUTURE WERE WELL WITHIN THE GOVERNMENT'S MEANS.

HONG KONG CAN COMFORTABLY AFFORD:

THAT

THE FAR-REACHING TARGETS IN KEY PROGRAMME AREAS ANNOUNCED BY THE GOVERNOR IN HIS POLICY ADDRESS, AND

VERY SUBSTANTIAL PROGRAMMES OF CAPITAL

SPENDING ON THE

PHYSICAL INFRASTRUCTURE, INCLUDING THE AIRPORT CORE PROGRAMME.

HE SAID THE FORECAST ALSO DEMONSTRATED THAT THE GOVERNMENT COULD AFFORD ΤΟ BE EVEN MORE AMBITIOUS AND UNDERTAKE FURTHER IMPROVEMENTS TO SERVICES IN KEY PROGRAMME AREAS, NEW INITIATIVES, AND MAJOR TAX CONCESSIONS.

HE SAID THIS BUDGET CONTAINED FAR-REACHING PROPOSALS FOR NEW EXPENDITURE, MADE POSSIBLE BY THE EXCELLENT STATE OF THE PUBLIC FINANCES.

"THEY REPRESENT WHAT I REGARD AS IMAGINATIVE YET PRUDENT USE OF RECORD BUDGET SURPLUSES TO PRODUCE LASTING ECONOMIC AND SOCIAL BENEFITS, WITHOUT MORTGAGING OUR FUTURE."

IN PARTICULAR, HE SAID THE GOVERNMENT HAD BEEN ABLE ΤΟ BRING FORWARD SOME IMPORTANT PROJECTS THAT, OTHERWISE, COULD NOT HAVE BEEN UNDERTAKEN FOR MANY YEARS.

BUDGET SURPLUS OF $20.5 BILLION FORECAST

THE THE BUDGET FORECAST OF SPENDING.

THE

FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, HAS REVISED SURPLUS FOR 1992/93 TO $20.5 BILLION FROM THE ORIGINAL $7.5 BILLION AS A RESULT OF HIGHER REVENUE AND LOWER

RESERVE BALANCE AT THE END OF THE YEAR IS NOW FORECAST TO BE $119.6 BILLION.

OF THE ADDITIONAL SURPLUS, $7 BILLION IS THE RESULT OF HIGHER- THAN-EXPECTED REVENUE.

THE FINANCIAL SECRETARY EXPECTED TOTAL REVENUE TO COME TO $133.3 BILLION. SOME 5.5% ABOVE THE ORIGINAL FORECAST OF $126.3 BILLION.

THIS SURGE IN REVENUE ACCOUNTS FOR ABOUT HALF THE ADDITIONAL

SURPLUS.

"THIS EXTRA