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Public Finance Fotimate for 1988/89: Prudent Expansion de Government
Expanditurg
The level of surplus gives the Governgent some room for prudently fting expenditure and lowering of tax rates. The draft estimate for expenditure on General Revenue Account is HK$50.0 billion including transfer to funds; whilst total revenue on the same account is estimated to be HX$$$.6 billion. After taking account of a package of revenue measures which will reduce recurrent yields, a surplus of XX$3.8 billion is
estimated and overall surplus, when taken together with funds account will be HK$5.5 billion.
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The estimated expenditure growth rate on Consolidated Account, including public bodies such as the Housing Authority and the Urban and Regional Councils, is 74 in real terms amounting to XX$62.6 billion at current prices.
Among all, it is notable that expenditure will be increased significantly to support the manufacturing industry. These include a grant to the Hong Kong Productivity Council for the first year of a new three- year programme for upgrading and expanding its productivity enhancement services, a grant to assist towards the creation of a plastic technology centre based on the Hong Kong Polytechnic and additional appropriation to enable the Industry Department to improve its promotional activities.
Bevenue Measures in 1988/89; Further Tax Concussions
On balance, the revenue measures are expected to cost HK$1.8 billion in 1988-89 financial year.
The package of revenue-raising measures include small increases in the duty rates on imported hydrocarbon oils, intoxicating liquors and imported alcohol, tobacco; and increases in fees and charges such as vehicle and driving licence fees, banks and deposit-taking company licence and registration fees, passenger embarkation and berthing fees, and postal and telecommunication fees and charges.
Tax concessions, on the other hand, are proposed on standard rate of personal tax (from 16% to 15%), profit tax (from 18 to 17%), stamp duty, and air passenger departure tax (from $120 to $100 for an adult). Increases in personal, child, and dependent parent allowances and a new allowance for working wives are also provided for.
Research Department Xarch 2, 1988
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