(2013-2014 Budget) HK$4.9b fiscal deficit forecast
(02-27 12:51)
Financial Secretary John Tsang Chun-wah said the operating expenditure for 2013-14 is estimated to be HK$352 billion and recurrent expenditure will be HK$291.3 billion, representing an increase of 15.5 per cent and 10.5 percent respectively over the revised estimate for 2012-13. It is estimated that capital expenditure will be HK$88 billion, including HK$70.1 billion on capital works. He expects the total government expenditure will reach HK$440 billion, an increase of 15.6 per cent compared with the revised estimate for 2012-13. Public expenditure will be equivalent to 21.7 per cent of GDP, he said.
The increases in expenditure, both total and recurrent, for 2013-14 far exceed the estimated nominal GDP growth of 5.5 percent in 2013.
"This clearly demonstrates that the current-term Government upholds the principle of committing resources as and when needed to provide appropriate services for the community," Tsang noted.
Total government revenue for 2013-14 is estimated to be HK$435.1 billion. Earnings and profits tax, estimated at HK$189.4 billion, will be our major source of revenue. Land revenue is estimated at HK$69 billion.
"It is expected that a small deficit of about HK$4.9 billion will be recorded in our accounts in the coming year, and we shall largely achieve fiscal balance," Tsang said.
Fiscal reserves are estimated at HK$729.1 billion by end-March 2014, representing approximately 34 per cent of GDP or equivalent to 20 months of government expenditure.
|
|
|
|
