Despite calls for the Land Fund to be used for long-term development projects, the Finance Branch is insisting it be merged with the Exchange Fund after the handover until the Special Administrative Region (SAR) government decides on its useage.
According to a paper prepared for the Legislative Council panel on financial affairs, the Finance Branch believes the $111 billion Land Fund should be transferred to the SAR government soon after it comes into being.
The paper says the Public Finance Ordinance stipulates that any money received by the Government should form a part of the new government's general revenue.
In line with the existing fiscal surpluses arrangement, any proceeds from the realisation of Land Fund assets will become part of general revenue, which will be placed with the Exchange Fund until the SAR government decides on its long-term use and management.
