ENG-1984 — Page 133

THE ECONOMY

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from 12.4 per cent in January 1984 to 4.6 per cent in December. The moderation in the rate of inflation was helped by a stable Hong Kong dollar in terms of the US dollar under the linked exchange rate system. Because of the global strength of the US dollar, the Hong Kong dollar in fact strengthened against many other currencies. Other factors were also favourable. For example, the moderate increase in domestic demand in the economy was not imposing undue pressure on the overall supply of resources, domestic credit demand increased only modestly, and the rate of inflation in Hong Kong's major trading partners remained moderate.

Among all the components of goods and services in the Consumer Price Index (A), clothing and footwear, services, housing, and transport and vehicles recorded the most rapid rates of increase during the year, at 10 per cent, 10 per cent, nine per cent and nine per cent respectively. While 71 per cent of the overall increase in the index was accounted for by these four components, another 25 per cent was due to the footstuffs components, by virtue of its large weighting in the overall index.

Expenditure on the General Revenue Account in 1983-4 and 1984-5

In the financial year 1983-4, total expenditure on the General Revenue Account was $33,393 million, comprising recurrent expenditure of $22,876 million and capital expendi- ture of $10,517 million. Estimated expenditure in 1984-5 is $37,333 million, comprising recurrent expenditure of $26,933 million and capital expenditure of $10,400 million. In 1983-4, there was a deficit of $2,993 million, and for 1984-5 an overall deficit of $2,139 million, of which $1,000 million was to be financed by the issue of Government Bonds, was anticipated in the Budget. Detailed breakdowns of revenue by source are given at Appendices 9 and 9a, and of expenditure by function at Appendices 10 and 10a. A comparative statement of recurrent and capital revenue and expenditure is given at Appendix 11, while a statement of revenue from duties is given at Appendix 12. At March 31, 1984, the accumulated reserves stood at about $16,077 million. At the same date, the public debt amounted to $390 million.

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