TNAG-1603-FCO40-2210-Future-of-Hong-Kong-annual-reports-to-Parliament-on-Hong-Kon-1987 — Page 115

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Hong Kong is playing an active role in the Uruguay

Round of Multilateral Trade Negotiations now underway

in Geneva.

(d)

The Public Finances

34.

sales.

than

The rapid growth of the Hong Kong economy

in 1986 and 1987 has boosted government revenues,

particularly from profits tax, stamp duty and land

There was thus a substantially higher surplus

previously expected in the financial

year

1986/87 and the surplus in 1987/88 is expected to be

still higher. These favourable results have to be

looked at in perspective with the three years 1982/3

to 1984/5, when deficits were recorded and calls had

to be made on the fiscal reserves in order that

public services could be maintained.

35.

The Hong Kong Government's policy is to

limit the growth of public expenditure to the long

term growth rate of the economy and to contain the

size of the public sector, currently equivalent to

about 15-16 per cent of the gross domestic product.

This will be achieved through prudent management of

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