More money to boost key services
The Draft Estimates of Expenditure for 1995-96, which are published today (Friday) together with the gazetting of the Appropriation Bill, propose major increases in spending to expand services in areas where they are most needed.
At the same time, the Government has adhered firmly to its principal budgetary guideline of keeping the growth in expenditure, over time, in line with the trend growth rate of the economy.
The Estimates represent a further step towards achieving the ambitious improvement targets for the future set by the Governor in his policy addresses since 1992 and provide the funds to meet the commitments published by branch secretaries in October 1994.
Total Government expenditure, including expenditure by the funds, for the new financial year will rise to $169.7 billion.
Announcing this, the Secretary for the Treasury, Mr Donald Tsang, explained that of the total of $169.7 billion, $123.5 billion is for recurrent expenses on existing and new services, and $46.2 billion on capital projects.
"Our spending priorities have been decided after consultations held by the Financial Secretary with members of the Legislative Council and community groups during the past year."
Mr Tsang emphasised that the Draft Estimates had been drawn up in accordance with the long established budgetary principle that over a period, the growth in Government expenditure should not exceed the trend growth rate of the economy.
With a forecast trend economic growth rate of 5 per cent a year in real terms, we are able once again to make significant improvements to services in the areas where they are most needed," he said.
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