XN000022-1997-03-06 — Page 11

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Mr K C Kwong (in English): I think that is being unfair on the welfare people because they do work very hard in providing additional residential places, additional day-care centres and so on.

Reporter (in Chinese): Mr Kwong, can you explain to us the trend? Now, concerning capital works, the peak has already passed. This affects the total government revenue, and its proportion to the total expenditure. But why is there still such a great increase on capital works expenditure?

Mr K C Kwong (in Chinese): Now, you mentioned revenue and you also mentioned expenditure, I don't understand your point. I am talking about expenditure.

Reporter (in Chinese): Overall public expenditure published last week has taken a smaller share in GDP. That is because the peak of capital expenditure has already passed. But in this Budget, we have not seen any decline in capital expenditure.

Mr K C Kwong (in Chinese): What figure are you referring to?

Reporter (in Chinese): If you could refer to page 11 of the booklet, Public Expenditure by Policy Group. For two items there are significant declines but for buildings, lands and planning, there is an increase of 44.9%. For the CWRF volume 2, many items are upgraded to category B. Is it because of the fact that as the peak period of the airport programme has already passed, some other capital works programmes can be upgraded?

Mr K C Kwong (in Chinese): Well, you are talking about something which is not said by me. So I don't know the background of your question. In our introduction to the estimates, page 11, Infrastructure - Buildings, Lands and Planning, one reason for the increase in expenditure is the expenditure on land resumption. For 97-98 there will be an increased expenditure compared with that of 96. I will ask Mrs Lam to tell details.

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If we take away the expenditure on lands, in terms of public works, following the completion of the airport core programmes, the expenditure on infrastructure for 97-98 will not reach an optimum level. We are considering the public works projects which can be brought forward. As for lands, I will ask Mrs Lam to tell you the details.