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On the revenue side, after the various tax and duty changes, said Mr Tsang: "I am forecasting total receipts in 1997/98 to be $234.7 billion - an increase of $32.4 billion over the revised estimate for 1996/97."
He said Hong Kong could expect a sharp growth in revenue for two reasons: the additional revenue from the collection of rents in accordance with the Joint Declaration and the Basic Law and the accounting changes to the treatment of income received from land transactions.
"I am forecasting an overall budget surplus for 1997/98 of $31.7 billion," said Mr Tsang.
However, he said, while this was a huge figure, the forecast should be viewed as a one-off.
He pointed out that there was one major omission from the Medium Range Forecast - it did not take into account the substantial contributions that might be needed for the high property projects under the Railway Development Strategy as the precise amount and timing of the contributions were not yet clear.
"We have to look with caution on 1997/98 as a unique year: falling after the completion of our contributions towards the cost of the airport and the airport railway and before our contributions to the Railway Development Strategy," said Mr Tsang.
It would only be prudent to earmark a sum of this magnitude to meet the potential funding for these projects over the forecast period, he said.
"A contribution of this size would take up virtually all of the surpluses I am forecasting for the period," Mr Tsang added.
End
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