2002-03 Expenditure Estimates

84.     Let me now focus on the expenditure estimates for 2002-03.  These estimates have taken into account the assumed 4.75% civil service pay reduction and the corresponding reduction in subventions for salary-related expenses to subvented organisations.

85.     I have earmarked adequate resources to implement the Chief Executive's vision for Hong Kong, including the policies and performance pledges announced in his Policy Address last October.

86.     In 2002-03, total recurrent government expenditure will amount to $204.9 billion, an increase of 5% in real terms over the revised estimate for 2001-02.  Recurrent expenditure for Education is estimated to be $49.3 billion, an increase of 8%; for Health $32.4 billion, an increase of 4%; for Social Welfare $32.1 billion, an increase of 9%; for Support $28.4 billion, a decrease of 2%; for Security $24.8 billion, an increase of 2%; for Infrastructure $11.8 billion, an increase of 4%; for Environment and Food $9.0 billion, an increase of 10%; for Economic $8.8 billion, an increase of 12%; for Community and External Affairs $7.6 billion, an increase of 3%; and for Housing $0.6 billion, a decrease of 1%.

87.     Government capital expenditure in 2002-03 is estimated to be $49.4 billion, representing an increase of 21% in real terms over the revised estimate for 2001-02.  This is due mainly to provisions for setting up the Continuing Education Fund, support for small and medium enterprises and increased spending on capital works.  Expenditure on capital works is estimated to be $28.5 billion, an increase of 15% in real terms over the revised estimate for 2001-02.  From 2003-04 to 2006-07, expenditure on capital works will be in the range of $25 to $30 billion per year, depending on progress of individual projects.