06-MAT-1992 16:31
HK GOVERNMENT HOUSE
+852 521 1368 F.03
4.
- 2 -
Looking at the five year period covered by the Medium Range Forecast, and allowing for interest on this additional surplus, our accumulated reserves by 1996-97 will be more than $7 billion higher than we had previously forecast and of particular relevance, $7 billion higher than the forecast available at the time of my Budget.
5.
This development was not - and could not have been foreseen, but it is very welcome nevertheless. It will enable us to continue with our planned increases in expenditure; to fund the proposed tax concessions; and to maintain an adequate "cushion" of reserves. At the same time it no longer seems necessary to raise additional revenue on the scale I had originally planned.
6.
The amount of the resulting increase in our projected reserves is, as it happens, roughly equivalent to the amount which I had intended to raise by increasing rates by half of one percentage point. I am pleased to announce that, under these changed circumstances, the Administration does not need to proceed with an increase to the general rates poundage this year, assuming of course that the other revenue measures are agreed. For this reason, I will not be introducing into this Council a resolution to increase rates in the context of
/this Budget.
No comments yet.
Private notes are available after approval.