TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 71

3

$mn

M.T.R.C.) are up by $98 million; and postal revenue is up by $16

million

Capital revenue: yields from land

sales are up by $199 million; and estate duty by $17 million

+735

+225

Recurrent expenditure: only up by

$12 million, despite the 1977 salaries revision which cost us

$260 million (but this was absorbed by unexpected savings in P.E. subheads due to recruitment lags) and net supplementary expenditure of $80 million (net after allowing for the

Additional Commitments vote and

declared offsetting savings). Compare performance (actuals compared with

estimates) in last two years:

1975-76

$mn

-168

66

1976-77

Capital expenditure: only down by $97 million, but this is after a transfer of $100 million to the

D.L.F. for on-lending to the Housing Authority. Nevertheless, this is better than our performance

in the last two years, viz:

1975-76

1976-77

$mn

-415

-556

Add: budgetted surplus

SECRET

- 12

+ 97

+ 1,045

30

+ 1,075

(= 11.6% of revised estimate of

revenue, but only 6.2% of total turnover).