TNAG-0621-FCO40-769-Budget-of-Hong-Kong-1977 — Page 8

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of goods and services, or by 20% in purely money terms.

If we actually manage to do this we shall have made up for the deliberate slow down in 1975-76 and the somewhat

disappointing performance in 1976-77. Certainly, I believe we can afford the expenditure I have budgetted

for of 8,245 million dollars because revenue is estimated

at 8,412 million dollars. And, indeed, I felt able to

consider certain tax concessions which I believe to be

desirable in their own right for social and administrative

reasons.

8.

But to look at the expenditure side of the budget

first: nearly 40% or over 3,200 million dollars will be

spent on our social services including housing, education,

medical services and social welfare. This is 20% more

than we shall spend this year and will enable us, for example, to complete new public housing accommodation in 1977-78 for nearly 109,000 people and other estates will

be in the course of construction for completion in later

years. A start will also be made on the building of

7,200 flats for sale under the Government's lome Ownership

Scheme.

More than 12,000 primary places will be provided

in new schools, mainly in the New Towns, and a further 3,700 places will be provided in special schools and special classes. The building of 15 new secondary

schools will be started and 32 new secondary schools

will be completed; and, of course, our intention to provide every Primary 6 leaver with a place in a secondary school

in the public sector will be achieved on time, that is to

say, by September 1978. And in the field of social

welfare, public assistance will be extended to all able- bodied unemployed adults subject to certain conditions.

9.

Another 20% of total expenditure or 1,670 million

dollars will be spent on improving and developing those

services and works so essential to the ordinary life of the community such as water supplies, various civil engineering works, fire services, roads and transport

Resource,

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/facilities.....