ALMOST 70 per cent of the unexpected increase in the Government's massive Budget surplus last year came from underspending, or deferred spending, rather than revenue increases.
The Budget outcome, issued in detail in the Government Gazette of July 23, raises serious questions about the Government's management of spending on huge infrastructure projects.
It also raises questions about its forecasting on spending programmes, and the reliability of present and budgetary forecasts.
This also raises questions about the fragility of the forecasts, especially during uncertain economic times and with China seeking to cool its overheated economy, and Hong Kong's reliance on China's economic health.
The figures produced in the Gazette show almost $11 billion of the additional unexpected surplus of about $17 billion came from underspending.
The rest came from additional revenues, giving an overall Budget surplus of about $22 billion, compared with an original forecast of $5.1 billion (excluding Government Bond raising).
It takes to $23 billion the underspending in the past two Budgets and $28 billion in the past three, most of which is merely deferred spending scheduled for catch-up.