TNAG-1152-FCO40-1432-Relations-between-Hong-Kong-and-the-Commonwealth-1982 — Page 86

narrowly based with low rates of charge, it cannot afford

costly overheads. The system, therefore, is kept simple

and easy to administer.

18: The average annual growth rate of public expenditure

in real terms over the 10 years ending 1981-82 was 13%.

Except for a brief pause in 1974 all expenditure could be

charged off to revenue and by 1 April 1981 the Government's

fiscal reserves were HK $23 billion (which form part of the

Government's total monetary assets held in the Exchange

Fund).

19. For the year 1982-83, estimated total expenditure is

HK $40.7 billion (HK $23.6 billion on recurrent account and

HK $17.1 on capital account) distributed as follows:-

Services

Social (housing, education

etc)

etc)

Community (transport, water

General (administration, law

and order etc)

%

10

39

27

Economic

Other

17

6

11

100

20. This expenditure will be financed as to 28% from direct

taxes, 16% from indirect taxes, 23% from fees and charges

and 33% from land sales. A surplus of about HK $2.7 billion

is expected.

- 5

1

/Social Services