HK expects 5% growth rate this year
(China Daily HK Edition)Updated: 2006-11-07 14:47
"But in view of the changing term, we will leave as much room as possible for the next government to manouvre with regard to financial policy considerations by not making a lot of policy changes at this time," the financial secretary explained.
On the government's financial position, Tang said the level of fiscal reserves was expected to top HK$316.3 billion by the end of March 2007 (equivalent to 15 months of government spending) and further rise to HK$401.5 billion by the end of March 2011 (equivalent to 17 months of government spending).
In view of the improving financial situation, Wong Kwok-hing from the Hong Kong Federation of Trade Unions expressed hope that the government would offer more help to the needy people.
Wong also said the fact that the number of taxpayers has been decreasing indicates a wealth gap. He stressed that it is not that people do not want to pay tax but only their income is so low for taxation purpose.
He also asked the government to speed up infrastructure projects in order to create more jobs and to help the small & medium enterprises to lessen their burden on rents.
The Civic Party's Mandy Tam, who also represents the accounting constituency, asked Tang to devise an indicator of fiscal reserves, and once the reserves reach a certain safety level, the government should spend the "surplus" to return wealth to the people.
Public discussion time for certain infrastructure projects is longer than expected, Tang replied. Take the Kai Tak development for example, the planning work was relaunched in light of the Court of Final Appeal's ruling on reclamation.
He also said it would be inappropriate for the government to interfere with market rents because the consequence could be very serious.
As to what level of fiscal reserves would be suitable, he said he would need to listen to more views before making a decision.
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