*******************************************
The draft estimates of expenditure for 2000-01 published today (Friday, 3 March). Announcing this today, the Secretary for the Treasury, Miss Denise Yue said:
"Last year the Financial Secretary announced in his Budget Speech that we would contain the growth in government spending in 2000-01 to 3% in real terms over the original estimates for 1999-2000. I am pleased to say that the draft Estimates which we have published today meet this target. With continued restraint over the next three years we should be able to bring the cumulative growth in government expenditure back in line with that of the GDP over the medium term. Despite this restraint in growth, the savings achieved under the Enhanced Productivity Programme will allow us to fund all previously announced new initiatives and improvement plans. We will continue to maintain our commitment to meet increases in demand, to improve the quality of public services and to invest in our physical infrastructure for the benefit of the community and our future economic growth. The detailed draft estimates provide the funds needed to implement all the initiatives and policy pledges announced by the Chief Executive in his previous Policy Addresses."
Government expenditure for the financial year 2000-01 will total $244 billion.
Miss Yue explained that this includes $194 billion for the recurrent expenses of existing and new services and $50 billion capital expenditure including major infrastructural works and various loan assistance schemes.
Miss Yue went on to say that the growth in recurrent spending in 2000-01 had been held down to 2.5% in real terms over the original estimate. But that because of substantial savings in 2000-01 the growth over the revised estimate for 1999-2000 would reach 5.7% in real terms.
She said that, within this overall growth, recurrent spending on social welfare would grow by 9.2% to nearly $30 billion in 2000-01, over the revised estimate for 1999-2000. While the growth rate in recurrent spending on social welfare had been contained to single-digits, welfare spending still showed a real growth of 88% over five years. As a result, welfare spending as a share of total public recurrent expenditure would increase from 9.5% in 1995-96 to 14.2% in 2000-01.
"Much of this increase is needed to meet increased demand under our various social security schemes; particularly an increase in cases under the Comprehensive Social Security Assistance Scheme." She said. "But, this apart we are still providing substantial improvements in direct services for the more vulnerable members of our community." She added.
These improvements include -
* For the elderly, an additional 2 510 residential places, including subvented and bought places, 10 social centres, 5 day care centres, 3 multi-service centres, 3 dedicated support teams and 2 home help teams to deliver domiciliary care services.
* For people with a disability, an additional 660 residential places and 680 day places.
* For children, an additional 706 day nursery places and 6 small group homes.
* An additional 60 pre-school places for children with a disability.
* An additional 20 social workers to strengthen family education and provide support to parents in guiding their children to help foster a closer parent-child relationship.
* 4 additional medical social workers to provide services at new medical facilities.
* Providing 1 school social worker in each secondary school by phases.
* An additional 7 child protection workers.
* 4 additional clinical psychologists to strengthen services for those in need.
* Meeting continued growth in social security payments (particularly those under the Comprehensive Social Security Assistance scheme).
Miss Yue said that over recent years the growth in social welfare spending had far outstripped the growth in other high priority areas such as education, health and the environment. She stressed the importance of achieving cost-effectiveness in welfare expenditure and of managing a sustainable social welfare programme in the medium and longer term.
"Our recurrent spending on Education will grow by 4.2% in real terms to over $45 billion. Within this, the budget of the Education Department will increase by 7.1%, in real terms, from $25.7 billion to $27.6 billion. This will allow us to make further improvements to our basic education programmes." Miss Yue said.
These improvements include -
* Commissioning 6 additional secondary schools and operating 44 more primary schools on whole-day basis.
* 168 additional English teaching posts to enhance the teaching of English in secondary schools adopting Chinese as the medium of instruction.
* 20 additional native-speaking English teachers in secondary schools.
* 132 additional teaching posts in primary schools to enhance library services and implement Reading Schemes.
* Upgrading a further 1 640 teaching posts in primary schools to graduate status.
* Further enhancing information technology in education by strengthening teacher training, engaging contract technical services and providing over 100 additional IT co-ordinators.
* Supplementary grant to schools to support school-based management.
* 8 more schools joining the Direct Subsidy Scheme.
"Our recurrent spending on Health will reach nearly $31 billion in 2000-01." Miss Yue said.
Additional funds have been provided for -
* 460 additional hospital beds
* A new skin clinic in Cheung Sha Wan
* Implementation of the Computerised Laboratory Information System (first phase) in the Department of Health
"We will also devote extra resources to our Security programmes." Miss Yue said. Improvements include -
* 54 additional police officers to strengthen operational front-line capabilities in new towns and new infrastructure.
* 10 additional staff in Fire Services Department for new fire stations.
* 6 additional staff in ICAC for the management of the Commission Against Corruption Information System.
* 27 additional staff in Immigration Department to process applications for Certificate of Entitlement (C of E) and to handle related judicial review cases.
* 8 additional staff in Government Laboratory to carry out genetic tests for verifying the parentage of C of E applicants born out of wedlock.
* 10 additional staff in Immigration Department for processing visa applications under the Admission of Talents Scheme.
* 4 additional staff in Customs and Excise Department to strengthen transport support at Lok Ma Chau Control Point.
"Our recurrent expenditure on environmental protection and conservation will grow by 7.6% in real terms, reflecting additional resources for commissioning and operating new sewage treatment plants, increased payments for the disposal of waste due to the commissioning of new facilities, additional staff for implementing air quality initiatives and additional resources for new barging points and for sorting facilities for construction and demolition waste." she added.
On capital expenditure, total public spending will amount to $78 billion. Government spending from the Capital Works Reserve Fund will reach nearly $35 billion while the Housing Authority will spend $23 billion on construction projects.
In addition, the economy will also be boosted by the work being undertaken by the KCRC on the West Rail project and Ma On Shan extension and by the MTRC on the Tseung Kwan O extension.
"I wish to thank my fellow Controlling Officers for their efforts in achieving substantial savings under the Enhanced Productivity Programme." Miss Yue said. "Without these efforts we would not have been able to provide such an impressive list of additional services, improvements in services, and investments in our future infrastructure."
"I am confident that with further EPP savings in the next two years we should be able to continue to improve services and to invest in our infrastructure for the future benefit of the community while at the same time restraining the overall growth in expenditure to a level which we can afford," Miss Yue said.
End/Friday, March 3, 2000
NNNN