Financial Secretary Donald Tsang Yam-kuen vowed to continue looking closely at how the community could benefit from the huge financial reserves after the handover.
But Mr Tsang reiterated in the debate over the Budget which straddles the handover that now was not the time to use the money - expected to total $359 billion by next March - as many members had suggested.
'Maintaining confidence, both locally and overseas, in the soundness of our financial systems is of paramount importance in the remaining months before the birth of the Special Administrative Region government and as we move into the new era,' Mr Tsang said.
The reserves provided a cornerstone to safeguard the security of the system, he said.
Members had urged Mr Tsang to spend part of the reserves on the elderly and education. Mr Tsang said the Government had begun to look at how best to use the money.
'I agree wholeheartedly with members who have pointed out that our robust finances reflect the contribution over the years by our community. It is right it should receive a return for its past endeavours.' Mr Tsang said the reserves recorded in this year's Budget were not extraordinarily high and the sharp rise in 1998 was a result of the incorporation of the Land Fund, accumulated since 1985, into the balance.
