XN000022-1995-03-01 — Page 42

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The Medium Range Forecast shows a surplus of $33 billion in both 1997-98 and 1998-99, the Financial Secretary said.

After taking full account of the SAR Government Land Fund, the Medium Range Forecast predicts total reserves at March 31, 1999 of $361 billion.

99.

This represents about 1.4 times total government expenditure forecast for 1998-

"I believe that this would be the highest ratio of reserves to spending achieved in the history of Hong Kong," Sir Hamish said.

End/Wednesday, March 1, 1995

Consultations with China on 1997-98 Budget

To prepare for the 1997-98 Budget, the Government has proposed a four-stage programme of briefings for a designated team of experts on how Hong Kong manages its public finances, the Financial Secretary, the Hon Sir Hamish Macleod, said in the Legislative Council today (Wednesday).

The four-stage programme is:

First, a general background briefing on the Government's fiscal and budgetary systems has been offered.

Secondly, a series of seminars would explain in more detail the key elements of the Government's budgetary system and procedures, such as the Medium Range Forecast, the annual Resource Allocation Exercise, the draft Estimates and revenue policy.

Thirdly, this expert team will be invited to observe each stage of the planning and preparation process for the 1996-97 Budget. This will enable Finance Branch to explain every aspect of the budgetary process.

Fourthly, starting from April 1996, the Hong Kong Government would consult the Chinese Government over the contents of the 1997-98 Budget.