THE HONG KONG GOVERNMENT'S RESERVES No papers handed over to date
Main features
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Points to make
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The Government's reserves as at 31 March 1992 were about $96 BN (1992).
Our present forecast is that they will stand at about $71 BN (1997) by 31 March
1997.
Our forecast of reserves in 1997 takes into account all Government spending on the ACP including equity investments (but not callable equity).
Our reserve positions at the end of each financial year are difficult to predict. Underspending on capital works and land acquisition, and increases in especially from land sales variable end-of-year results.
revenue
can cause
The forecasts we passed to the Chinese Side in February 1991 were the best available at the time. The present forecast is much more favourable. The Chinese side should be reassured by this.
We
shall need substantial reserves to provide certainty over the period between now and 1997. This will contribute to stability. We have large expenditure programmes, and must have reserves to meet unforseen contingencies.
We
shall stick to our policy of maintaining our expenditure within the trend growth rate of GDP.
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