TNAG-1413-FCO40-1889-Future-of-Hong-Kong-annual-report-to-Parliament-on-Hong-Kong-1985 — Page 295

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33.

Looking ahead to 1985, our economy should continue to benefit from the expected growth in the world economy. However, Hong Kong remains as always vulnerable to external events, and we must be alive to the possibility that the world economy may grow less rapidly than now foreseen.

34.

Whatever happens, the Government will continue with prudent and consistent policies involving minimum intervention, which, in the past, have been instrumental in fostering sustained economic growth.

(b) Management of the Public Finances

35.

The economic recession in 1982 is still having an adverse effect on government revenues notably because of the depressed state of the property market and the poor performance of some companies that year. In addition, duties collected SO far this year have been lower than expected, possibly the result of substantial pre-budget stocking. These shortfalls, however, are likely to be balanced by

better than estimated revenue from other sources SO that

total revenue for the year is still expected to be on target.

36.

Expenditure is running below the level estimated mainly because of continuing tight control and the competitive tender prices bid for some capital projects. Although it is still too early to provide a reliable estimate

of the

and revenue

for expenditure outturn

this financial

year, it is expected that there will be an appreciably smaller deficit on General Revenue Account than the budgetted figure of $2.1 billion. This, in any case, represents less than 1% of our Gross Domestic Product. This deficit will be financed in part by the highly successful issue of Government Bonds to the value of $1 billion repayable within 5 years.

/37.

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