THE Financial Secretary, Donald Tsang Yam-kuen, admitted yesterday he had less flexibility in formulating next year's Budget because of the economic slowdown and drop in corporate tax revenue. The economic growth rate had been slower than in the past few years, Mr Tsang said. And it faced unfavourable external circumstances and domestic difficulties such as unemployment, he told RTHK. 'The room for flexibility is smaller,' he said, indicating the Government would not be able to heed calls for major tax cuts and allowances in the 1996/97 Budget. He said he hoped the Government would reach a consensus with legislators over the increase in government fees.