TNAG-2470-FCO40-3594-Budget-of-Hong-Kong-1992 — Page 88

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3

Reserves

6.

against

Substantial reserves are Hong Kong's insurance

and economic contingencies,

future political

particularly important

for

an economy totally unprotected

from swings in the world business cycle. The expansion of

the economy (and some capital works underspending) has made

it possible for the Financial Secretary to add $14 billion

in reserves

bor

borrowings.

to the fiscal

1991-92,

before

Projected

reserves for 1996-97 are

over $70 billion, a

reasonable cushion.

Capital Works

7.

The

Budget makes provision

for spending

The Airport Core

of

$29 billion on capital works in 1992-93.

Programme accounts for only 25% of the total capital works

spending over the period to 1996-97. Thus about 75% of all

funds allocated to capital works

works will go to non ACP

projects.

Revenue Measures

8.

The Financial. Secretary has sought to reduce the

burden of direct taxation by across-the-board increases in

salaries tax personal

These

concessions conc

(83%)

Į

allowances ranging from 11% to 15%.

will cut the tax bill for $1.2 million

taxpayers, and drop 120,000 out of the tax bracket

entirely.

to'd

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