TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 43

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TO IMMEDIATE HONG KONG TELEGRAM NO 196 OF 7 MARCH

INFO HONG KONG GOVERNMENT OFFICE LONDON.

See

1. SIR ANTHONY ROYLE HAS TABLED TWO ORAL QUESTIONS ON THE

BUDGET. HE ASKS THE SECRETARY OF STATE:-

an

(A) WHAT IS THE TOTAL OF GOVERNMENT SPENDING BY THE HONG KONG GOVERNMENT FOR THE FORTHCOMING YEAR: AND WHAT PROPORTION OF THIS FIGURE WILL BE RAISED FROM ADDITIONAL TAXES, INCREASED BORROWING

OR BY CALLING UPON HONG KONG'S RESERVES.

(B) IF HE WILL PUBLISH HOW MUCH THE HONG KONG GOVERNMENT

INTENDS TO SPEND ON SOCIAL SERVICES DURING THE FORTHCOMING YEAR:

WHAT IS THAT FIGURE AS A PERCENTAGE OF TOTAL RECURRENT AND

CAPITAL EXPENDITURE: WHAT PERCENTAGE OF THE TOTAL BUDGET WILL BE

SPENT ON PUBLIC WORKS: HOW MUCH WILL BE SPENT ON THE RENTED

HOUSING PROGRAMME: WHAT IS THE SIZE OF HONG KONG'S INVESTMENT

IN MAJOR CIVIL ENGINEERING WORKS IN 1978/79: AND IF HE WILL

PUBLISH HONG KONG'S BUDGET IN THE OFFICIAL REPORT.

2. OŃ (A) WE PROPOSE TO ANSWER TOTAL ESTIMATED EXPENDITURE FOR THE FINANCIAL YEAR 1978/79 IS HK DOLLARS 10,266 MILLION, APPROXIMATELY POUNDS STERLING 1,208 MILLION. NONE OF THIS WILL BE RAISED BY ADDITIONAL TAXES, BORROWING OR CALLING UPON RESERVES. FOR (B) WE WOULD SAY THAT SOCIAL SERVICES EXPENDITURE WILL BE HK DOLLARS 4,374 MILLION, 43 PERCENT OF TOTAL EXPENDITURE. SINCE IT IS NOT PRACTICAL TO PUBLISH THE BUDGET WE INTEND TO OFFER TO

PLACE A COMPLETE SET OF DOCUMENTS IN THE HOUSE LIBRARY AND WOULD

BE GRATEFUL IF A SET COULD BE SENT AS SOON AS POSSIBLE. GRATEFUL

FOR INFORMATION TO ANSWER THE OTHER POINTS IN (B) AND ANY COMMENTS YOU HAVE ON OUR PROPOSALS FOR (A) BY 09007 9 MARCH.

OWEN

FILES

CQPIES TO

HK & GD (5) ECON D

MR MURRAY

HONG KONG GOVT OFFICE

MR HAYES

PS/LORD GORONWY-ROBERTS MR CORTAZZI

CONFIDENTIAL