CONFIDENTIAL
SPEAKING NOTE
STANDING COMMITTEE TO MONITOR THE PLANNING PAPER
AGENDA ITEM (b): HONG KONG BUDGET
36
1. At his meeting with Lord Goronwy-Roberts on 9 December the Governor said that he expected the Hong Kong budget for 1977/78 would be $HK8,600 million, which would represent an increase of 23% in real terms made up of a 17% increase in recurrent expenditure and 47% increase in capital expenditure. Current rates of taxation would be unchanged and the budget would be financed by:
2.
(a)
(b)
an up-dating of rateable values. There would be a decrease in the 'poundage' but the result would be about a 30%
increase in revenue; and
an increase in personal allowances.
Increasing public concern over the extent to which the re-rating would hurt property owners forced the Hong Kong Government to make an announcement in early January to the effect that the increase in revenue from rates would be about 25% and not 30% as indicated at the time of the Governor's visit. Lord Goronwy-Roberts accepted that the timing of the announcement on the rates had been entirely a matter for decision by the Governor.
3.
Lord Goronwy-Roberts asked the Governor to let him have "in an appropriate form and by an appropriate channel" as much detail as possible of the Hong Kong Government's thinking on the budget three weeks in advance of Budget Day. The Financial Secretary is due to make his budget statement on Wednesday, 2 March. This means that the information Lord Goronwy-Roberts requested should be available here by Wednesday, 9 February.
If it has not arrived by then, I propose
to remind the Governor by telephone.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.