XN000022-1997-03-12 — Page 36

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Mr Donald Tsang (in Chinese): That will of course have an immense impact on our economy but as far as I see it the chances for this to happen are not that great. So what we are doing now is what we can anticipate and 5.5% is objective and balanced.

Moderator (in Chinese): Thank you for coming. Thank you Mr Tsang and thank you Mr Kwong and Mr Rowse. For those who have not been able to ask questions, tomorrow at 3 pm at the same venue Mr Tsang will also be here to take questions. Thank you.

End

Budget preparation a matter entirely for HKSAR: FS

To achieve a unified transitional Budget, a process of consultation had been carried out by the Joint Liaison Group's Budget Expert Group for the whole financial year 1997/98, the Financial Secretary, Mr Donald Tsang, said today (Wednesday).

Delivering his Budget Speech to the Legislative Council, Mr Tsang said it had been made clear that after June 30, 1997, the preparation of the annual Budget would be a matter entirely for the Special Administrative Region and its Government in accordance with the Basic Law.

He said throughout the consultations, there were four objectives:

firstly, to achieve a Budget that would cover the entire financial year from April 1, 1997, to March 31, 1998; a budget which was financially sound and prudent and which would take into account the interests of all;

Secondly, to ensure that public services would continue smoothly, uninterrupted by the transition;

Thirdly, to ensure that there would be no room for doubt about the continuity of the tax system and other sources of revenue across the transition; and

Fourthly, to draw up a Budget which would strengthen Hong Kong's financial and economic prospects for the future.