TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 87

Revenue:

Recurrent

Capital

Expenditure:

Recurrent

Capital

SECRET

2

Surplus on recurrent account

Deficit on capital account

.. Overall surplus

$M

$M

7,900

(1)

1,200

9,100

6,240

1.900

8,140

1,660

700

960

Notes: (1) Excludes $335 million from MTRC

for the Kowloon Bay Depot site and

$528 million from Home Ownership Fund

being premia for Phase 1 sites.

(2) Contra-entries excluded.

3.

The conversion of a budgetted surplus of $30 million

into a likely surplus of $960 million (cf 18th November

guess of $450 million) can be explained as follows:

Recurrent revenue:

reflecting the

buoyancy of our economy in 1976,

when GDP in money terms grew by

27%, yields from earnings and profits

taxes are up by $262 million and,

reflecting the better than expected

performance of the economy in 1977

SECRET

$M

/ (15%