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Macleod's final surplus set to top record $22.5b

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HONGKONG is heading for another record surplus, with final calculations set to be even bigger than last year's $22.5 billion.

The Financial Secretary, Mr Hamish Macleod, is ready to announce a surplus of close to $20 billion in his March 3 Budget speech, based on figures for the first three quarters of the financial year.

But the finalised accounts for 1992-93, to be published in about June, may see the windfall boosted to a record level by a late flood of profits tax, land revenue and stamp duties.

These taxes traditionally force major revisions of the year's financial outcome, particularly in recent years blessed with a booming economy.

A key factor affecting the stock market's performance, and therefore the final financial benefit to the Government, will be the protracted Sino-British row over the constitutional package put forward by the Governor, Mr Chris Patten.

Mr Macleod is understood to be engineering a budget for next year under which the bulk of the surplus will be spent on one-off, non-recurrent items.

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