TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 31

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

it will be published for further consultation with the general

public. This course of action is considered necessary in view of the complexity of the whole issue. On the subject of insider

dealing, the Standing Committee on Company Law Reform has

already done much useful work, and I expect to receive

recommendations shortly. I am grateful to the Committee for its

efforts. Its task is not an easy one.

32.

In 1986 we have seen rapid developments in financial markets worldwide. We have also seen significant changes in the

field of regulation. Here in Hong Kong we must be able to

respond quickly as the need arises. Otherwise, we will find

ourselves losing out as a major financial centre. Furthermore,

there is the vital question of reputation. We must not allow

the integrity of our markets to be tarnished by the imprudent activities of the greedy. But equally we must avoid the dangers of over-regulation. This is a difficult balance to strike, but

we shall do our best.

STRATEGY FOR PUBLIC FINANCES

33.

Before I present my Budget proposals for 1987-88, I

shall describe the context in which they have been framed. My proposals should not be looked at

not be looked at in isolation. They must be

related to what has happened in the past and what is foreseen

for the future. A strategy for the medium term is essential to

the stability of Government's finances and the steady

development of the economy.

34.

I shall give details later to show the strength of our

underlying position. Briefly, however, our expenditure remains

firmly under control and is in line with forecast. On the other hand, revenue yields have increased substantially in response to

an improvement in economic performance. As a result, we can now

expect in the current financial year a surplus on General

Revenue Account of some $3 billion. Furthermore, although

partly due to revenue of a windfall nature, the balances in our

capital funds have gained by some $1.9 billion.

D

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