TNAG-0570-FCO40-703-Planning-paper-on-Hong-Kong-1976 — Page 38

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consideration of whether they can be carried out needs to take

account of the pattern over the past eight years or so. Government expenditure on social programmes has, of course, increased enormously: from HK$728 million at current prices in 1967/68 to an estimated HK$2,720 million in 1974/75. The proportion of social spending of the total budget has risen more slowly and erratically: 39.4% in 1967/68; 32.9% in 1972/73; 37% in 1973/74; and 40% of the

current budget. To a large extent these figures reflect the

demands for expenditure on other essential community services such as roads, water, etc, without which Hong Kong would have ceased to

be viable. However, the present 3 year budget forecast provides for the proportional social spending to rise to 48% in 1979/80. But the indications would seem to be that the significant acceleration in social spending envisaged requires either a substantial growth in the economy or greatly increased Government resources from the existing economy, and probably both. The growing sophistication of Hong Kong industry and the needs of the population over the next decade require an increase, and improvement, in secondary and technical education and the extension of compulsion

to secondary as well as primary education as places become available from 1978 onwards.

12. Assuming the money is available, the first priority for expenditure would seem to be in the field of social security.

(Full

In spite of the improvements of recent years, there are weaknesses

or gaps in the social security system, though to some extent these

are attributable to the absence of any contributory element. details are in Annex D.) There is no direct provision for unemployment benefit (though in Asia such benefits are only paid in Japan, and in Hong Kong the requirement is to some extent met by public assistance). Pensions are small and are available only to persons of 75 and over; sickness benefit is an employer's liability and does not extend beyond 24 days; and there is no pension for widows as such. To some extent these deficiencies are covered by public assistance but there is much room

for improvement. There are several

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