TNAG-2470-FCO40-3594-Budget-of-Hong-Kong-1992 — Page 51

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extreme. We might point out that under the current medium range forecast, 1997 reserves are only marginally lower than those reported for the end 1991, not including the additional savings that are being made for the SAR portion of the land fund. Government expenditure is therefore still balanced with revenue, even at a time of high spending commitments. Central government expenditure as a proportion of GDP is, and is likely to remain,

the lowest of any developed country.

9.

After all, when did the Chinese Government last spend within their income ? In 1978. Hong Kong has consistently had a surplus since 1985/86.

Aunty

CE Lane

Economic Advisers