TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 89

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4

Capital expenditure:

only down by

$112 million, but this is after

a transfer of $100 million to

the DLF for on-lending to the

Housing Authority.

Nevertheless,

this is better than our performance

in the last two years, viz:

$M

$M

1975-76

-415

1976-77

-556

+

112

+

930

Add: budgetted surplus

30

+

960

4.

So we have done well on the expenditure side this

year and the unexpected revenue flush has had a useful

anti-inflationary impact: the GDP deflator will be, at

3% only, much less than the budget forecast of 7% and the

average level of the CPI, for 1977 over 1976 will be no

more than the budget forecast of 6%, despite the fact

that the economy's growth momentum has been due to the

strength of domestic sector activity.

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/ Fiscal