HKSAR gov't expenditure for 2007-08 estimated at 248.4 bln HK dollars

Total government expenditure for 2007-2008 is estimated to be 248.4 billion (31.8 billion U.S. dollars), or 1.14 percent increase from previous fiscal year, Hong Kong Special Administrative Region (HKSAR) government Financial Secretary Henry Tang said in Hong Kong Wednesday.

In the 2007-2008 Budget presented to the Legislative Council here Wednesday morning, Tang said those expenditure spent on education, social welfare, health and security would account for over 60 percent of the total budget.

Tang said he would continue to observe the principles of prudent management of public finances, keeping expenditure within revenue limits, to strike a balance between promoting economic development, improving people's livelihood and supporting the long- term development of Hong Kong.

He said the government will continue to earmark 29 billion HK dollars (3.72 billion U.S. dollars) a year on average for infrastructure projects over the next few years.

In the next financial year, a number of major projects will commence construction in Hong Kong, including the Tamar development project and the improvement and upgrading works for the 2009 East Asian Games sports facilities, and about 23,000 new jobs will be created for the construction industry.

According to the budget, Hong Kong's fiscal reserves will stand at 365.8 billion HK dollars (47 billion U.S. dollars) by March 31 this year and will be maintained between 390 billion and 580 billion HK dollars (50 billion to 74.3 billion U.S. dollars) over the next five years.

Meanwhile, a surplus of 7.2 billion HK dollars (923 million U.S. dollars) is expected in the Operating Account for 2007-2008, and the surplus will build up to 41.4 billion in 2011-2012, according to the budget.

In respect of the Consolidated Account, a surplus of 25.4 billion HK dollars (3.2 billion U.S. dollars) is estimated to occur in 2007-2008, and will build up to 58.7 billion HK dollars ( 7.52 billion U.S. dollars) in 2011-2012.

Tang said the government must stay alert to the challenges ahead and face up to the long-term pressure on public finances brought to bear by such challenges as a narrow tax base, unstable revenue, economic restructuring and an aging population.

Source: Xinhua