TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 171

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UNCLASSIFIED

PP INTRA TRESY

FM HKBTC TO INTRA 040910Z MAR GRS 200

UNCLASSIFIED

FM BTC HONG KONG TO PRIORITY DTI

TELNO INTRA 52

OF 040910Z MARCH 93

AND TO PRIORITY TREASURY

TREASURY FOR MR J MORTIMER

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RECEIVED IN REGISTRY

30 MAR 1993

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INDEX

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Action Taken

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FOR: OT2 AND PEP

1993-94

HONG KONG BUDGET

MAIN POINTS OF THE BUDGET UNVEILED BY THE FINANCIAL SECRETARY ON

3 MARCH ARE AS FOLLOWS:

1. ECONOMY

GDP IS FORECAST TO GROW BY 5.5 PERCENT IN REAL TERMS: GDP PER HEAD WILL AMOUNT TO HKD146,000 (USD18,800), PROBABLY OVERTAKING THAT OF THE UK AND AUSTRALIA

TOTAL EXPORTS ARE FORECAST TO GROW BY 18.5 PERCENT IN REAL TERMS, WITH RE-EXPORTS GROWING BY 25 PERCENT, AND IMPORTS BY 19 PERCENT

CONSUMER SPENDING WILL RISE BY 7.5 PERCENT IN REAL TERMS

PRIVATE SECTOR SPENDING ON MACHINERY AND EQUIPMENT WILL GROW BY 15 PERCENT IN REAL TERMS

INFLATION WILL STAY HIGH AT 9.5 PERCENT IN 1993 (9.4 PERCENT LAST YEAR)

GOVERNMENT EXPENDITURE AND REVENUE

TOTAL GOVERNMENT SPENDING (EXCLUDING PAYMENTS OF HKD19.7 BILLION FROM THE CAPITAL INVESTMENT FUND): HKD132.5 BILLION (UP 17.4 BILLION FROM LAST YEAR)

TOTAL GOVERNMENT REVENUE:

BUDGET DEFICIT:

RESERVES (1992-3)

RESERVES (1993-4)

RESERVES (1996-7)

2. HEALTHCARE

HKD150 BILLION

(HKD3.4 BILLION)

HKD119.6 BILLION HKD116.2 BILLION HKD 78.4 BILLION

HKD17.2 BILLION TO BE SPENT ON HEALTHCARE INCLUDING A NEW HKD1.1 BILLION, 600-BED HOSPITAL TO BE BUILT FOR NORTH DISTRICT