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The draft Estimates of Expenditure for 2001-02 published today (March 2) provide for $252.7 billion government expenditure in the coming year.
Announcing this today, the Secretary for the Treasury, Miss Denise Yue, said: "Government spending in 2001-02 will grow by $26.6 billion, or 10.8% in real terms, over the latest estimated spending for 2000-01."
"This growth in government expenditure plus the re-deployment of savings under the Enhanced Productivity Programme will allow us to meet on-going commitments, demand for additional services and new as well as improved services, investments in our infrastructure, and all the initiatives announced by the Chief Executive in all his Policy Addresses."
Of the total government expenditure for next year, $203 billion is for recurrent spending and $49.7 billion is for capital spending.
Miss Yue explained that recurrent government expenditure in 2001-02 will grow by $16.4 billion, or 7.9% in real terms over the latest estimated spending for 2000-01.
Recurrent spending on education will amount to $47.6 billion, an increase of $3 billion or 5.5% in real terms over the latest estimated spending for 2000-01. "This will allow us to make further improvements to our basic education programmes", Miss Yue said.
Some of the key improvements are :
* Upgrading 145 teaching posts in primary schools to provide leadership in developing the English curriculum and in the teaching of English.
* Implementing curriculum reform.
* Implementing various Education Reform initiatives, including providing more training in early childhood education; strengthening the support for students with special educational needs; introducing the Composite Furniture and Equipment Grant for aided schools with effect from the 2001/02 school year; developing the Basic Competency Assessments; and implementing the District Teacher Network Scheme.
* Operating 46 more primary schools on whole-day basis.
* Upgrading a further 1,640 teaching posts in primary schools to graduate status.
* About 100 additional teaching posts in secondary schools to enhance the use of Chinese as the medium of instruction.
* About 170 additional teaching posts in primary schools to co-ordinate library services and support the Extensive Reading Schemes.
* Providing training in connection with proficiency assessment.
* Additional schools joining the Direct Subsidy Scheme.
Recurrent spending on health will amount to $31.8 billion, an increase of $1.3 billion or 3.2% in real terms over the latest estimated spending for 2000-01. Some of the additional funding will provide for :
* 145 additional hospital beds.
* 40 additional day hospital places.
* Introducing family medicine practice in 5 General Out-patient Clinics.
* 3 additional Community Psychiatric Teams.
* 2,500 patients provided with new psychiatric drugs.
* Assessing 1,400 young persons to identify psychotic problems for early treatment.
* A new Public Health Laboratory Centre in Shek Kip Mei.
Recurrent spending on social welfare will amount to $30.2 billion, an increase of $2.7 billion or 9.3% in real terms over the latest estimated spending for 2000-01. "Part of this increase is to meet increased demand under our various social security schemes and part of it is to meet the demand for additional services for the more vulnerable members of our community", Miss Yue said.
Some of these additional services include :
* An additional 2,541 residential places, 7 social centres, 3 multi-service centres, 60 day care centre places and enhanced home and community care services for elders.
* An additional 540 residential places, 100 day places, 500 sheltered workshop places and 180 supported employment places for the disabled.
* An additional 500 day nursery places.
* An additional team for the community support service scheme and expansion of 8 integrated teams for young night drifters.
* Additional care assistants and programme assistants in various services units for elders, rehabilitation and youth.
* 2 additional child custody workers, 20 child protection workers and 2 clinical psychologists to assist victims of sexual and domestic violence and people with marital problems.
* 6 additional medical social workers at new medical facilities.
* 4 additional school social workers for new schools.
* Meeting continued growth in social security payments.
"We will also provide extra resources to our security programme," Miss Yue said. Improvements include :
* 138 additional police officers to strengthen operational front-line capabilities and traffic enforcement in new towns and new infrastructure.
* 104 additional staff in Fire Services Department for new fire stations and additional ambulances.
* 5 additional staff in Fire Services Department for implementation of the Railway Development Strategy.
* 11 additional staff in ICAC for establishment of a Quick Response Team.
* 26 additional staff in Customs and Excise Department for customs facilities at Container Terminal No. 9.
* 54 additional staff in Correctional Services Department for the commissioning of the redeveloped Tai Lam Correctional Institution.
* 117 additional staff in Immigration Department to strengthen manpower at Lo Wu Control Point.
* 45 additional staff in Immigration Department and additional briefing-out provision for Department of Justice to expedite the handling of judicial review cases arising from right of abode litigation.
"In addition, our recurrent spending on employment, training and retraining will amount to $2.2 billion, an increase of $0.8 billion or more than 55% in real terms over the latest estimated spending for 2000-01. The additional resources will provide more training services to our workforce, enabling it to acquire new or enhanced vocational skills in an increasingly knowledge-based economy", Miss Yue said.
On capital expenditure, total government spending for 2001-02 will amount to $49.7 billion, an increase of $10.2 billion or 24.6% in real terms, over the latest estimated spending for 2000-01. Spending under the Capital Works Reserve Fund alone next year will reach $31.4 billion.
Including expenditure by the Housing Authority, the five Trading Funds and the Lotteries Fund, total public expenditure in 2001-02 will amount to $290.7 billion. This is about 21.4% of GDP.
In addition, the economy will be boosted by the work being undertaken by the KCRC on the West Rail, Ma On Shan Extension and Tsim Sha Tsui Extension projects; and by the MTRC on the Tseung Kwan O Extension.
"The growth of government spending proposed for 2001-02 is in line with the spending guideline laid down by the Financial Secretary in his Budget Speech last year." Miss Yue said.
"I wish to thank my fellow Controlling Officers for their continued efforts in achieving substantial savings under the Enhanced Productivity Programme, while maintaining the quality of the existing service. Their savings have provided us with additional resources which we have re-deployed for new and improved services", Miss Yue said.
"We are on schedule to achieving the target of 5% EPP savings by 2002-03," she added.
End/Friday, March 2, 2001
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