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Budget Speech

Estimates for 2022‑23

193. The major policy initiatives announced in the 2021 Policy Address involve an operating expenditure of about $10.4 billion and a capital expenditure of $4.7 billion.  I will ensure that adequate resources are provided to fully support the launch of these initiatives.

194. Total government revenue for 2022‑23 is estimated to be $715.9 billion.  Earnings and profits tax is estimated to be $251.1 billion, increasing by 3.3 per cent over the revised estimate for 2021‑22.  Having regard to the Land Sale Programme and the land supply target of 2022‑23, revenue from land premium is estimated to be $120 billion, decreasing by 15 per cent compared with the revised estimate for 2021‑22.  Revenue from stamp duties is estimated to be $113 billion, increasing by 11.9 per cent over the revised estimate for 2021‑22.

195. Total government expenditure for 2021‑22 decreased by 14.4 per cent, with its share in nominal GDP projected to drop from the peak of 30 per cent in 2020‑21 to 24.4 per cent.  Total government expenditure for 2022‑23 will increase by 15.5 per cent to $807.3 billion.  Public expenditure will continue to account for about 24.9 per cent of GDP on average during the five‑year period up to 2026‑27 in the MRF.

196. The recurrent expenditure of the current‑term Government increased from $361.8 billion in 2017‑18 to $467.1 billion in 2020‑21, representing an increase of nearly 30 per cent.  Of this, expenditure on education, social welfare and healthcare, which are the three policy areas closely related to people's livelihood, accounts for about 58 per cent.  In 2022‑23, the estimated recurrent expenditure on education, social welfare and healthcare accounts for 60 per cent or $341.6 billion.  Among these, the expenditure on healthcare has recorded the largest increase, representing more than double of that in 2017-18.

197. The Government's target of zero growth in the civil service establishment will remain unchanged in 2022‑23, with the aim of ensuring the sustainability of public finances.  It is expected that as at the end of March 2023, there will be about 197 000 posts in the civil service establishment.



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