TNAG-1766-FCO40-2520-Hong-Kong-Budget-Appropriation-Ordinance-1988-(No.-23-of-198-1988 — Page 35

4.

state of the

A budget speech does not merely give a snapshot of the the economy and the public finances at a particular point in time. More importantly, it gives us the opportunity to

examine our performance since the last budget and to forecast

what the economy may have in store for us next year and in the

years beyond. This approach reflects what I believe should be the underlying theme in the management of our public finances

the careful planning of public services in the light of what we

can afford over the longer term. I must stress that the prudent

management of our public finances, given the cyclical nature of

our economy, depends to a great extent on our continuing to pay

close attention to trends and on taking early action where

necessary to avoid more extreme measures at a later date. As I

reveal my budgetary proposals for 1988-89 I hope it will be apparent how this underlying theme of steady management has, once again, been woven into my thinking.

5.

From time to time Members have usefully commented on the presentation of the documents supporting the budget. This

year,

I have altered the format of the draft Estimates. Under

each head of expenditure, we have provided sufficient detail to

enable Members to identify not

not only the objectives of each

department but also how the funds

the funds to be appropriated to each

head will be devoted to achieving these objectives.

addition, we have attempted to give measures of both output and

effectiveness. I hope that the changes that we have made will

be seen by Members as an improvement. The task continues. I am particularly conscious of the need to give further consideration

to the refinement of our Consolidated Account definition.

6.

In

I shall now embark upon the substance of this budget by describing the performance of the economy in 1987 (1).

(1) See '1987 Economic Background' for further details.

/THE