ENG-1997 — Page 102

THE ECONOMY

58

1997-98, 28 study areas have been identified for cutting red tape, assessing and reducing costs of compliance, transferring services to the business sector where appropriate market conditions prevail, and improving services to support the business sector. These studies will be completed within the next financial year.

The Services Promotion Programme was launched in August 1995 also under the aegis of a Task Force chaired by the Financial Secretary. In March 1997 it produced its final report, covering the progress of various action items and setting out initiatives. Following that report, the Services Promotion Strategy Group, comprising prominent business figures, academics and senior officials was formed in April 1997 to advise the Financial Secretary on matters relating to the development of Hong Kong as a service economy and as the pre-eminent services centre in Asia. For 1997-98, the group has endorsed a 10-point publicity programme and a 12-point Action Agenda which includes monitoring the 125 initiatives outlined in the Final Report.

Structure of Government Accounts

The government controls its finances through a series of fund accounts. The General Revenue Account is the main account for day-to-day departmental expenditure and revenue collection. Six other funds exist mainly to hold investment or to finance capital expenditure and government loans. They are the Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Loan Fund and Land Fund.

The Capital Works Reserve Fund finances the public works programme, land acquisitions, capital subventions, major systems and equipment items, and computerisation and the payment of redemption money in respect of land exchange entitlements. Its income is derived mainly from land premiums and appropriations from the General Revenue Account.

The Capital Investment Fund finances the government's capital investments (mainly in statutory public bodies), such as equity injections in the Airport Authority, the Kowloon-Canton Railway Corporation and the Mass Transit Railway Corporation, and capital investments in the Housing Authority. Its income is derived mainly from appropriations from the General Revenue Account and dividends.

The Civil Service Pension Reserve Fund acts as a reserve to meet payment of civil service pensions in the unlikely event that the government cannot meet such liabilities from the General Revenue Account. Its income is derived mainly from appropriations from the General Revenue Account and interest on investment.

The Disaster Relief Fund finances grants for humanitarian aid in the event of disasters outside Hong Kong. Its income is derived mainly from appropriations from the General Revenue Account and interest on investment.

The Loan Fund finances loan schemes such as housing loans and student loans. Its income is derived mainly from appropriations from the General Revenue Account, loan repayments, and interest on loans.

The Land Fund, established on July 1, 1997, receives and holds all of the assets, including all accounts receivable, net of expenses, transferred from the HKSAR Government Land Fund. Its investment is managed by the Hong Kong Monetary Authority in accordance with the directions of the Financial Secretary.