March 20, 2025
    Advanced Search 
  Home>News Center>China
       
 

HK trims civil service to rein in budget
By Gang Ji (Chian Daily)
Updated: 2004-03-11 09:02

The government of the Hong Kong Special Administrative Region is taking firm measures to rein in its budget deficit which is expected to reach HK$49 billion (US$6.28 billion), or 4 per cent of its GDP in fiscal 2003/04.


Hong Kong's Financial Secretary Henry Tang presents his annual budget at the Legislative Council March 10, 2004.[Reuters]
In what is widely seen as an acceptable maiden budget speech Wednesday, Financial Secretary Henry Tang proposed trimming government expenditures progressively to HK$200 billion in 2008/09 from HK$217.4 billion this fiscal year.

The major reduction is the cut in the size of the civil service. Tang said the government will continue to reduce the size of the service from current 172,000 to 166,500 by the end of March in 2005 and further to 160,000 by 2006/07.

"I fully agree that the government should first put its own house in order by containing expenditure stringently before considering tax increases," said Tang.

But there may not be any need to increase taxes because of the strong recovery of the economy, which generates increased public revenues.

Hong Kong's economy is forecast to register a 6 per cent GDP growth this year, as compared with 3.3 per cent in 2003. Riding on a GDP growth of 3.8 per cent over a medium term, the government aims to eradicate the fiscal deficit and even generate a slight surplus of HK$6 billion by 2008/09.

"In this year's budget, I propose no further increases in salaries tax, profits tax or any other tax," he said.

"A substantial increase in profits tax and salaries tax simply for the sake of financing the deficit could lead to a drain on capital and talent instead, thereby undermining our competitiveness," he added.

Instead, he proposed introduction of goods and services tax (GST) in three years. An internal committee has been set up to consider the implication of such a tax on the overall economy.

According to a rough estimate, each single percentage point in the rate of GST will yield revenues of about HK$6 billion a year.

"As regards the impact of GST on the economy, experience shows that in places that have introduced this tax in recent years, its effects on prices are limited and short-term," Tang continued.

He also proposed the issuing of government bonds to provide additional fiscal flexibility. A maximum of HK$20-billion government bond will be issued to finance infrastructure projects in 2004/05 financial year.

Sources said that the HK$20 billion government bond would have a maturity of at least 5 years with a maximum coupon rate of 5 per cent per year. At these terms, interest cost would amount to about HK$1 billion per year.

 
  Today's Top News     Top China News
 

Pakistanis may be near bin Laden's aide al-Zawahri

 

   
 

Government relaxes control of airfares, finally

 

   
 

U.S. launches WTO complaint against China

 

   
 

Report: China, Iran sign US$20b gas deal

 

   
 

FM to pay official visit to DPRK

 

   
 

women bosses urged to date and marry

 

   
  FM to pay official visit to DPRK
   
  As kids keep on calling, experts worry
   
  Gov'ts urged to clear up payments in arrears
   
  Sino-US trade advances amid problems
   
  Police website builds bridges to community
   
  Drought worsens capital water crisis
   
 
  Go to Another Section  
 
 
  Story Tools  
 
Font Large Medium Small
E-Mail This Story
Print Friendly Format
Comment On This Story
Save This Story
 
  Related Stories  
   
Historic HK budget with HK$20b bond scheme
   
Financial secretary: CEPA boosts HK economic recovery
  News Talk  
  Staking a whole generation of Chinese entrepreneurs  
Advertisement
         

| Home | News | Business | Living in China | Forum | E-Papers | Weather |

| About China Daily | About China Daily.com.cn | Contact Us | Site Map | Jobs |
 Copyright 2005 Chinadaily.com.cn All rights reserved. Registered Number: 20100000002731
主站蜘蛛池模板: 欧美特黄a级高清免费大片| 久久久久亚洲AV无码专区体验 | 麻豆天美精东果冻星空| 成人一a毛片免费视频| 亚洲欧美偷自乱图片| 高校饥渴男女教室野战| 女人笫一次一级毛片| 亚洲AV乱码中文一区二区三区| 美女被艹免费视频| 国产精品无码免费视频二三区 | 精品国产一区二区三区在线| 国产人妖chinats| 国产成人精品免费视频动漫| 娇BBB搡BBBB揉BBBB| 亚洲一区在线视频| 精品久久久久久久中文字幕| 国产精品igao视频网网址| 中文字幕在线无码一区二区三区| 曰批免费视频观看40分钟| 伊人久久综合精品无码AV专区| 激情五月激情综合| 宅男噜66免费看网站| 久久久久久久综合日本| 日韩久久精品一区二区三区| 亚洲精品国产成人| 老鸭窝在线观看视频的网址| 国产精品高清一区二区三区不卡 | 最新中文字幕av专区| 亚洲伦理一区二区| 欧美成人午夜精品免费福利| 国产一级在线播放| 高铁上要了很多次| 国产思思99re99在线观看 | a级毛片无码免费真人| 好吊妞视频一区二区| 一区二区精品在线| 日韩国产中文字幕| 亚洲精品夜夜夜妓女网| 男男性彩漫漫画无遮挡| 国产在线视精品麻豆| 97色精品视频在线观看|