TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 193

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11.2.87

85.

The growth in expenditure is partly accounted

for by the further equity injection of $1 billion into the

MTRC,

which the Government is committed to make in

1987-88. It also reflects provision for higher capital

expenditure.

As I mentioned earlier, capital spending has

fallen substantially in recent years. There is now some

scope for tackling the list of outstanding projects.

Whilst I have had regard to the recurrent consequences of

projects once completed, I propose to allocate $6 billion

for new projects starting in 1987-88, which is

$1.2 billion more than for the current year.

86.

Allowing for inevitable lead times, it will

take a while for this boost in capital spending to be

reflected in cash flows. For 1987-88 there is room for

more immediate expenditure, which will have a positive

impact on Government's longer term position both

financially and in terms of efficiency. I have in mind

some rationalization of Government's accommodation, and a

variety of measures involving, for example,

computerisation and equipment renewal.

87.

Revenue accruing directly to the funds

comprises receipts from a combination of land sales, loan

repayments, interest payments and sales of flats under the

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