Lawmakers Wednesday gave Hong Kong's Financial Secretary's 2006-07 Budget the nod of approval after passing the Appropriation Bill in the Legislative Council in a vote of 50-4, with one abstention.

In a speech to the legislators, Financial Secretary Henry Tang recognized his proposed budget had generated considerable debate in the community. "Although views are divergent, I am happy to note the findings of various independent surveys: the majority of respondents have endorsed my principle of fiscal prudence," he said.

Three policies outlined in his budget will have a long-term effect on Hong Kong's future economic viability: prudent management of public finances, expanding Renminbi business and pooling of talent.

"The policies adopted in our overall plans should be mutually beneficial to the mainland. We must adhere to the 'three Cs' principle, namely, Complementarity, Co-operation and friendly Competition with the mainland," Tang said.

One of the important strategies for financial development in future, he said, is to strengthen our role as the launchpad for mainland enterprises to invest and raise capital in international markets, complementing the mainland's financial reform and economic development.

Tang also stressed the importance of prudent fiscal policies. " Maintaining a small government, Spending within our means, Sharing wealth where we can,and Investing in the future, these are all aspects of fiscal prudence and also the pledges that I am striving to fulfill."

He pointed out that prudent fiscal management serves a number of purposes by keeping the taxes low and simple, providing a basic safety net and saving up for a rainy day. "This is the approach that best satisfies the community's public-finance aspirations," he said.

Source: Xinhua