CONFIDENTIAL
DSR 11C
17. The Governor mentions in his Despatch that he hopes to raise social expenditure from 37% of total (Consolidated Account) public spending in 1972/73 to 48% in 1979/80. What would the proportion for 1979/80 become if new social programmes pushed the ratio of public expenditure to the gross domestic product up to 25%?
About 54%, with the new social programmes representing some 21% of total
social expenditure :
Consolidated Account expenditure in 1979/80 at 1976 prices = HK$10511 million (question 2). Of this, 48% (= HK$5045 million) is social expendi- ture, as per the Despatch, which needs to be increased by HK$1445 million (question 5) less the HK$70 million for collecting the 'luxuries' tax (question 11). Thus revised social expenditure (HK$6420 million) repre- sents 53.7% of revised Consolidated Account expenditure (HK$11956 million, question 5). The additional social programmes on the Consolidated Account (HK 1445 million less HK$70 million) represent 21.4% of revised social expenditure (HK$6420 million).
CONFIDENTIAL
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