Madam President,

Introduction

        I move that the Appropriation Bill 2002 be read a second time.

　
2.        This is my maiden Budget.  I feel honoured, but also under some pressure.  Honoured because, under the leadership of the Chief Executive, I can serve the people of Hong Kong by working together with Members of this Council, the community and my colleagues in the civil service to map out the future economic development of the Hong Kong Special Administrative Region and manage its public finances.  I feel pressured because Hong Kong must overcome the difficulties spawned by the current economic downturn, and because I must address the structural problem of our public finances.

　
3.        Since I took office ten months ago, the views expressed by our citizens, along with surveys conducted by the media and academic institutions, have consistently indicated that the public are most concerned about how we are going to revive the economy and improve employment prospects.  The public expect me to identify the directions for economic development and to work with the community to sustain our prosperity.  They also expect the Government to introduce further relief measures in this time of economic difficulty.

　
4.        During this period, I also met with representatives of the local and international financial sectors.  All were most concerned about Hong Kong's fiscal deficit problem.  I am fully aware that, due to the externally-oriented nature of the Hong Kong economy and our linked-exchange-rate system, keeping public finances sustainable is of paramount importance.  The economic crisis in Argentina and the social unrest this has triggered are the results of overborrowing brought about by persistent fiscal deficits and price rigidity.  To safeguard Hong Kong against any such crisis, we must implement effective measures to restore fiscal balance within a reasonable period of time.

　
5.        As I prepared this Budget, I received many valuable suggestions from Members of this Council and the media.  I also met with members of the public and various sectors, including the financial sector, labour groups and academia.  My heartfelt thanks go to everyone.