TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 181

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35.

this year,

As the pace of economic growth has quickened

Government

revenue has continued

has continued to grow.

In particular, it is now expected that the yield from

profits tax will be higher than forecast. On the

other hand, Government expenditure so far this year is

close to the budget estimate. As a result, the

surplus in 1986-87 is likely to be

originally estimated.

This

is

greater

than

particularly

encouraging since the sources of revenue experiencing

growth are largely

therefore,

years.

recurrent in nature and will,

establish а higher base for subsequent

會

36.

In formulating the budget, one

one of the major

objectives over the years has been to restrain the

growth rate of public

public sector expenditure

to within

The latest estimate of

that of the economy.

expenditure on the Consolidated Account in 1986-87 is

$48.1 billion, about 1% below the budget estimate.

37.

As a result of the upward revision to the

GDP forecast for 1986 and the likely downward revision

to the expenditure on the Consolidated Account, the

revised forecast of the relative size of the public

sector is 16.6%,

slightly less than the budget

/estimate of