Our First Budget
in the 21st Century

Gentle Hand on the Tiller j
¡@

We want to help Hong Kong recover from the economic setback of the last two years. So despite a continuing budgetary deficit, you will find in this Budget :

  • No New Taxes
  • No Tax Increases
  • No change to Any Existing Allowances and Deductions; and
  • Lower Rates for Most Rates-payers following the Reduction in Rateable Value

¡@

¡@

1.2Eng.jpg (21690 bytes)
Revenue Proposals j
¡@
  • We will extend the Diesel Duty concessionary rate of $2.00 per litre for another nine months until 31 December 2000
  • We will extend the First Registration Tax exemption for electric vehicles for another three years until 31 March 2003
  • We will reduce the Stamp Duty on stock transactions by 10% from 0.25% to 0.225% to enhance Hong Kong's competitiveness as an international financial centre

¡@

2.2Eng.jpg (13434 bytes)

¡@

¡@

¡@

¡@

¡@

2.3Eng.jpg (20361 bytes)

¡@

¡@

¡@

¡@

¡@

¡@

¡@

Expenditure Initiatives j
¡@

This Budget implements in full the Chief Executive's expenditure programmes and contains further expenditure initiatives. These will provide more and better services to the community, especially the unemployed and the needy.

¡@

Quality Education for All
  • 44 more primary schools to operate whole day
  • 100 additional Information Technology Co-ordinators and more technical services to schools to support the use of information technology in education
  • A further 1 640 teaching posts in primary schools upgraded to graduate status
¡@

3A1.jpg (24845 bytes)

¡@

3A2.jpg (18155 bytes) ¡@
  • $140 million to increase textbook assistance and travel subsidy to students in need
  • $800 million set aside to implement priority improvement initiatives on education reform
  • $5 billion for building and improving the premises of schools and tertiary institutions

¡@

Caring for the Elderly
  • 2 510 more residential places

  • 10 additional social centres, 5 day care centres and 3 multi-service centres

¡@

3B1.jpg (21044 bytes)

3B2.jpg (24299 bytes)

¡@

  • An extra $64 million to enhance home and community care

Welfare Services for the Community
¡@
  • 706 more day nursery places
  • 6 000 more subsidised places for the After School Care programme for children

3C1.jpg (18347 bytes)

¡@
  • 660 more residential places and 680 day places for people with a disability
  • 60 more pre-school places for children with a disability

¡@

¡@

3C3.jpg (20922 bytes)

3C6.jpg (17083 bytes) ¡@

¡@

  • One social worker per secondary school by phases
  • Better services for single parent families, new arrival families and victims of domestic violence

¡@

¡@

Building a Stronger Workforce
¡@
  • Over 10 000 Youth Pre-employment Training places for school-leavers between 15 and 19
  • 1 500 additional training places for secondary 3 and secondary 5 school-leavers at the Vocational Training Council
  • 1 000 more training places for junior information technology technicians
  • An extension of the non-means-tested loan scheme for life-long learning

¡@

3D1Eng.jpg (26308 bytes)

¡@

3D2.jpg (18286 bytes)

¡@

Promoting Self-Reliance
¡@
  • Extension of the Active Employment Assistance programme to all employable CSSA recipients
  • Special employment support programmes for single parent and low-income CSSA recipients
  • Relaxation of restrictions on earnings to encourage CSSA recipients to work

¡@

¡@

¡@

3E3.jpg (21721 bytes)

Supporting Innovation and Technology
¡@
  • Building a $2 billion Science Park at Pak Shek Kok
  • Establishing the Applied Science and Technology Research Institute with recurrent expenses of $65 million in 2000-01
  • $870 million towards innovation & technology projects

¡@

3FEng.jpg (16800 bytes)
Quality Home
  • Recurrent spending on environmental protection and conservation to increase by 7.6%

  • Funds allocated to encourage taxis to switch to LPG

3G1.jpg (22576 bytes)

¡@

¡@

3G3.jpg (24626 bytes)
  • $90 million to clear unauthorised building structures over the next 3 years
¡@
  • 66 more staff to Fire Services Department and 47 more staff to Buildings Department to enhance fire safety of private buildings

¡@

¡@

¡@

¡@

3G4.jpg (19234 bytes)
Invigorating the Public Sector                  j
¡@
  • We will save $1,150 million in 2000-01 through the Enhanced Productivity Programme
  • We will reduce the size of the civil service by 10 000 over the next three years
  • We will allow serving civil servants in designated grades to retire earlier voluntarily to accelerate the pace of reform and provide the public with better value for money
  • We will reform the subvention system by giving Non-Government Organisations greater flexibility in return for greater productivity

¡@

4.1Eng.jpg (13781 bytes)

4.2Eng.jpg (20405 bytes)

¡@

¡@

¡@

¡@

¡@

¡@

Fiscal Prudence Begins at Homej
¡@
  • We will restrict the growth of Government recurrent spending in real terms to 2.5% in 2000-01. This is 1.5% lower than our forecast economic trend growth rate of 4%

¡@

ChartEng.jpg (48916 bytes)

¡@
  • We will set up a Task Force to see whether there is any long-term fiscal risks under the present tax regime
  • We will appoint an independent committee comprising tax experts, professionals, and academics to look at the suitability of introducing new types of broad-based tax in Hong Kong

¡@

Scaling New Heights Together
¡@
  • Hong Kong's economy is bouncing back. It grew by 2.9% last year and is forecast to rise by 5 % in 2000

¡@

6.1Eng.jpg (23777 bytes)
6.2Eng.jpg (18857 bytes) ¡@
  • Globalisation will bring us new business opportunities
  • China's entry into the WTO will open numerous doors to wealth for us

¡@

6.3Eng.jpg (21485 bytes)

  • To take full advantage of these exciting developments, we will make sure that:
    • our economy remains free, open and market-led;
    • we have a well-educated and skilled workforce;
    • the Government gives maximum support to business and keeps its  intervention in the economy to the minimum;
    • with the help of a new and dedicated agency, we will attract more foreign companies to invest in Hong Kong;
    • Hong Kong has the right policies and institutional structure in place to harness the power of innovation and technology;
    • Hong Kong retains its simple, predictable and low tax regime; and
    • our fiscal position remains sound and healthy in the new century.


¡@

Back.jpg (31270 bytes)

¡@

¡@