TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 187

CONFIDENTIAL

ANNEX

الله

HONG KONG BUDGET

The other main features are:

(a) The revised estimates of Revenue in 1973-74 are

(b)

HK$5,276 million against expenditure of HK$4,833 million.

If approved by the Finance Committee HK$300 of the surplus

will be added to the Government equity contribution for the

Mass Transit Fund. HK$500 million was allocated for this

purpose last year making the new total HK$800 million thus

leaving HK$200 million to be carried forward to the general

revenue balance.

(c) The fiscal reserves have dropped from HK$3,179 million at

(a)

(e)

1 April 1973 to an estimated HK$3,066 million at 31 March

1974. The reduction has been caused by the declining value

of foreign currency assets.

Estimates for 1974-75 are revenue up to HK$5,679 million

against expenditure of HK$5,747 giving a budgetted deficit

of HK$68 million which becomes HK$154 million after allowing

for further known commitments.

Recurrent revenue at HK$5,169 million is estimated to be

8.4% over the revised estimates. Expenditure (mainly Civil

Service emoluments and subventions for higher education) is

estimated at HK$3,914 million. Recurrent expenditure is

expected to rise by 71% annually over the next few years.

(f)

The capital revenue is HK$510 million against expenditure

of HK$1,833 million.

(g) To help finance expenditure there have been several minor

tax increases mainly on liquors, tobacco, general rates (in

CONFIDENTIAL

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