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"As Financial Secretary, however, I need to be mindful of Hong Kong's status as a centre for trade, finance and tourism," he explained. Thus he had proposed the above change.

The proposal will come into immediate effect under a Public Revenue Protection Order issued today.

End

Transition Budget underpins strong and healthy economy

Hong Kong's economy and public finances remain strong and healthy in this historic year of change, the Financial Secretary. Mr Donald Tsang, told the Legislative Council in his annual Budget address today (Wednesday).

Mr Tsang revealed that the Hong Kong Special Administrative Region government would start life on July 1 with around $330 billion in reserves (including the Land Fund).

He revealed a $15 billion surplus for 1996/97 and forecast a $32 billion surplus for 1997/98.

In a Budget entitled 'Continuity in a Time of Change', Mr Tsang had good news for tax payers, drivers, property owners and even wine lovers.

Hong Kong's social safety net received a boost, with $126 billion pledged for education, public housing, health and welfare services.

He said the (Joint Liaison Group's) Budget Expert Group had agreed on a 'through Budget' complying with the Basic Law and covering the whole financial year from April 1, 1997 to March 31, 1998.

This ensures public services will continue uninterrupted, with improvements to existing services where necessary.

The Budget also maintains the integrity and continuity of the tax system across the transition and strengthens Hong Kong's financial and economic prospects for the future, said Mr Tsang.