ENG-2009 — Page 108

60 The Economy

resolutions of the Legislative Council for specific purposes. They include 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 accumulated balances of the General Revenue Account and the above eight Funds constitute the Government's fiscal reserves.

The Capital Works Reserve Fund finances the public works programme, land acquisitions, capital subventions, major systems and equipment, 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 in relief 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 help promote innovation and technology upgrading in manufacturing and service industries. 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 Hong Kong Special Administrative Region 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 education 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 Mark Six Lottery and investment income

In addition to the above Funds, the Bond Fund was established in July 2009 in connection with the implementation of the Government Bond Programme (GBP) to promote further and sustainable development of the bond market in Hong Kong. The Bond Fund does not form part of the fiscal reserves and is managed separately from other Government accounts. Its income is derived from the issuance of bonds under the GBP and investment income.