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The 2007-08 Budget The 2007-08 Budget
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Budget Speech

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Directions for Development

18.        The recovery of our economy has allowed us more room to consider and map out the directions for our future development.  In promoting economic development, I consider the following three principles to be crucial:

 

l first, market leads and government facilitates;
 
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second, maintain strict fiscal discipline and manage public finances prudently by keeping expenditure within the limits of revenues, striving to achieve a fiscal balance and keeping the budget commensurate with the growth rate of GDP; 

 
l  third, maintain a low and simple tax regime.  
 

 

19.        Our ability to undergo continuous economic restructuring is a key element underpinning Hong Kong's competitiveness.  Service industries account for 91 per cent of our GDP, and those enjoying the fastest growth include financial services, import/export and logistics.  To retain our share of the highly-competitive international market, Hong Kong must keep moving towards high value-added production and a knowledge-based economy.  Our economic integration with the Mainland is pivotal to our future development. Hong Kong's restructuring should complement the economic development of the Mainland, and create a "win-win" situation.  To achieve this, we should focus on the following three areas:

 

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first, reinforce our competitive edge by vigorously developing our financial services, trade, logistics and tourism industries, thereby fostering growth in a broad range of economic activities;

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second, create a favourable environment for a knowledge-based economy by pooling talent, encouraging creative industries and facilitating research and development;

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third, care for the disadvantaged, helping them to achieve self-reliance and improve their livelihood.

 

 

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2006 | Important notices

Last revision date : 28 February, 2007