60 The Economy
Public Finance
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. There are eight other funds established by resolutions of the Legislative Council for specific purposes. They are the Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund.
The Capital Works Reserve Fund finances the public works programme, land acquisitions, capital subventions, major systems and equipment items, computerisation and the payment of redemption money in respect of land exchange entitlements. Its income is derived mainly from land premiums and investment income.
The Capital Investment Fund finances the Government's capital investments, such as equity injections to the Airport Authority and the MTR Corporation Limited, and capital investments in the Housing Authority and the Urban Renewal Authority. Its income is derived mainly from appropriation 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 from investment income.
The Disaster Relief Fund finances grants for humanitarian aid to help victims of disasters that occur outside Hong Kong. Its income is derived mainly from appropriation from the General Revenue Account.
The Innovation and Technology Fund finances projects that contribute to innovation and the upgrading of technology in the manufacturing and service industries, and those that contribute to the upgrading and development of the manufacturing and service industries in general. Its income is derived mainly from investment income.
The Land Fund was established on July 1, 1997 to enable the investments held by the former Trustees of the HKSAR Government Land Fund to be formally brought into the Government's account. Its income is derived from investment income.
The Loan Fund finances loan schemes such as housing loans and student loans. Its income is derived mainly from loan repayments and interest.
The Lotteries Fund finances welfare services through grants and loans. Its income is derived mainly from sharing the proceeds of the popular Mark Six lottery.
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