Hong Kong Financial Secretary Henry Tang hoped he could hand over a "better tuned budget" to hissuccessor when his tenure as financial secretary in the second term of the government ends in 2007.

Speaking on RTHK talk show "Dialogue with Secretaries," Tang said the government's financial position has improved substantially with the strong economic upturn in 2004.

He expected fiscal balance to be restored in the operating account by 2008-09 as scheduled, and in the consolidated account by 2007-08, one year ahead of target.

He said the operating deficit could be eliminated earlier than 2008-09 if the economy continues to pick up.

To implement the proposal to abolish estate duty, the government will introduce a relevant bill to the Legislative Council later this month for deliberation, Tang said.

Although the proposal will cost the government 1.5 billion HK dollars (192.31 million US dollars) a year, the move will encourage the further development of the financial services industry and strengthen Hong Kong's position as an international financial center, he said.

However, he said, as investment decisions are influenced by many factors, it is impossible to give an accurate estimate of theinvestment that will be induced if estate duty is abolished.

Source: Xinhua