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Budget Speech

Public Finances

147.    In its report released last year, the Working Group on Long-Term Fiscal Planning pointed out that with an ageing population and slowing economic growth, government expenditure would keep growing at a faster pace than that of revenue and the economy.  If this trend persists, structural deficits will surface within ten years.  While Hong Kong would still experience budget surpluses in the coming few years, we need to take early and positive actions to contain expenditure, preserve the revenue base and save up in a timely manner to avoid the appearance of structural deficits.



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