TNAG-1723-FCO40-2436-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 170

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VY

RELAX

Speech by the Honourable the Financial Secretary in Legislative Council: Wednesday 13 January 1988

He said:

Sir,

I move the motion standing in my name in the

Order Paper.

Over the next few years, the Administration will

implement an improved system of internal financial

management to facilitate the ongoing process of determining priorities in recurrent and capital

expenditure within overall financial constraints.

essential feature of this system is the block allocation

of financial resources to individual policy areas so that

relative priorities may be determined within each sector.

3.

An

To facilitate implementation of the system, it

is necessary that a clear distinction be made between

recurrent expenditure and capital expenditure. To date,

certain major Capital Account items have been funded from

the General Revenue Account. From the beginning of the

next financial year, I propose that these items be

transferred to the Capital Works Reserve Fund Account.

6