TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 182

11.2.87

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63.

As to capital expenditure financed from the

funds outside the General Revenue Account, there has been

a downward trend in recent years. This reflects more the

phasing of major commitments than any deliberate policy.

Thus, there has been less of a drawdown of the funds

through which Government finances capital expenditure and

loans than might have been expected. Although the latest

forecast for the current year indicates some

under-spending, there are signs that the decline is

bottoming out. In total, capital expenditure from the

funds was below budget by some $0.4 billion or 4%.

64.

A significant new factor is the increasing

ability of the Housing Authority to finance a higher

proportion of its capital spending from its own

resources. The effect has been to reduce the Housing

Authority's need to draw on the Development Loan Fund in

1986-87. This trend towards lower requirements from the

Development Loan Fund is on present indications likely to

continue.

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