Spending surge 'to be covered by revenue growth'
OFFICIALS maintained yesterday that spending would not exceed revenue despite the big increase in expenditure due over the next five years.
Speaking at a meeting of the provisional legislature's financial affairs panel, Secretary for Treasury Kwong Ki-chi said spending would increase by five per cent in the coming five years.
Recurrent expenditure is to increase by $7.7 billion in 1998-99 and by $18.6 billion in 2001-02 with a number of new initiatives to improve and provide new services for education, social welfare and health.
Spending on the elderly, including both financial assistance and direct services, will increase by 16.3 per cent in real terms.
The Government also plans to inject huge sums into infrastructural and industrial developments according to the Chief Executive's maiden Policy Address.
That includes the injection of $5 billion for railway projects, $6.5 billion for hi-tech projects and another $500 million for establishing a credit guarantee scheme for small and medium enterprises.
But Mr Kwong said the predicted expenditure was in line with the five per cent growth in revenue. He maintained that the Government would control costs, such as recruitment of staff, to implement new projects.
'Though there will be a five per cent increase in expenditure, the number of new staff employed will only increase by one to two per cent,' Mr Kwong said.
He said the Government would maximise the revenue from its estate. 'Where we have surplus quarters, we will be releasing them either for sale or as sites for development to either private or public developers,' he said.
