LC: Supplementary Appropriation Bill

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Following is the speech by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, in moving the second reading of the Supplementary Appropriation (2002-2003) Bill in the Legislative Council today (June 18):

President,

I move that the Supplementary Appropriation (2002-2003) Bill be read the second time.

Section 9 of the Public Finance Ordinance states that "If at the close of account for any financial year it is found that expenditure charged to any head is in excess of the sum appropriated for that head by an Appropriation Ordinance, the excess shall be included in a Supplementary Appropriation Bill which shall be introduced into the Legislative Council as soon as practicable after the close of the financial year to which the excess expenditure relates".

The expenditure accounts for the financial year 2002-2003 have been finalised by the Director of Accounting Services. The expenditure charged to 8 heads, out of a total of 91 heads, is in excess of the sum originally appropriated for those heads in the Appropriation Ordinance 2002. In each head, the excess expenditure reflects supplementary provision approved by the Finance Committee or under powers delegated by it. The Supplementary Appropriation (2002-2003) Bill seeks final legislative authority for the amount of supplementary provision approved during the year in respect of particular heads of expenditure by the Finance Committee or under powers delegated by it.

The total supplementary appropriation required in respect of the 8 heads of expenditure is $271 million.

Despite the supplementary appropriation required for 8 heads of expenditure, total expenditure from the General Revenue Account was within the amount originally included in the Appropriation Ordinance 2002 as a result of savings in other heads of expenditure and the provision made for additional commitments in the original estimates for the year.

I hope Members will support the Supplementary Appropriation (2002-2003) Bill. Thank you.

End/Wednesday, June 18, 2003

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