TNAG-2753-FCO40-3968-Budget-of-Hong-Kong-1993 — Page 18

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Mr. Kickets, HKD

The minister was

grateful for this mothe

Mr

Ham

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HKB

100/3

RECEDED IN REGISTRY

DESK

INDEX

23 MAR 1993

G.J. Davey' 813

Mshite

PS/Mr Goodlad

Am 713

PA

REGISTRY FROM

SZEMEL

100/3

F Ricketts

Hong Kong Department

DATE: 5 March 1993

cc: Sir J Coles o/r

Mr Broadbent,

Economic Advisers Mr Morris, FED Mr Wye, RAD

q

HONG KONG: 1993 BUDGET

1.

The Minister might like a brief summary of the main points in the Financial Secretary's budget speech on 3 March:

This

- A record surplus in 1992/93 - HK$20.5 billion.

is higher than the projected figure due to capital underspending and higher than expected revenue.

Budget deficits projected for each of the years up to 1997, with the extra spending going mainly to fund capital programmes, particularly the Airport.

Nevertheless, an increased reserves forecast of HK$78.4 billion at 31 March 1997 - HK$6.8 billion more than last year's estimate.

- Inflation forecast to remain uncomfortably high at

9.5% in 1993.

Corporate profit tax rate to remain unchanged at 17.5%.

Expenditure includes new measures (beyond those announced by the Governor in October) on social security, health, the environment and

infrastructure, particularly improved road links with China.

- Tax reductions for 90% of income earners, through

higher allowances and bands. Reduced stamp duty on share dealing.

goodlad.budget/MONEY/bp

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