TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 184

11.2.87

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34

67.

Taking the General Revenue Account surplus

together with this increase in fund balances gives an

overall surplus for the year of $4.9 billion.

68.

In the light of the improvements in 1986-87 I

xpect our general reserves to stand at around

Zu Dillion at the end of this year plus balances of a

further $12 billion carried in our various funds. We have

a number of contingent liabilities and these must be

allowed for (21). There is no absolute rule as to the

correct level of reserves. It should be recognized,

however, that although our reserves are increasing again,

they remain in real terms slightly below their level at

the start of this decade before we fell into deficit.

the average annual surplus of $1.5 billion that we have

projected over the forecast period is no more than

sufficient to maintain the real value of our reserves.

And

(21)

Listed in Appendix F.

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