LAST BUDGET PROPOSAL FOR CURRENT GOV'T

The budget proposal is an annual address delivered by the Financial Secretary of the Hong Kong Special Administration Region (HKSAR) government. Usually, it is addressed in February. This is the last budget for the current HKSAR government whose term will end in the middle of this year.

In his final speech, Tsang said that while adhering to the principles of prudent management of public finances, Hong Kong government had showed the commitment to the community.

"For my five budgets, I have increased government expenditure by nearly 70 percent. This exceeds GDP growth of 21 percent for the same period. Dedicated to education, medical services and social welfare to cater for public needs in such areas, this spending also helps invest in the future and sustain economic vibrancy," Tsang said.

Apart from it, he also highlighted the importance of ensuring the structural integrity of public finances and keeping adequate fiscal reserves for future challenges.

Summing up the performance of the current government, Tsang said it has introduced an array of measures to stabilize the economy and safeguard people's livelihood during the past five years and also has attached importance to preserving employment.

Looking ahead, Tsang said that global economic crises will take a different course in terms of frequency, speed of contagion and intensity under the impact of globalization. As Hong Kong continues to grow, being an open and small economy, it is inevitably vulnerable to any fluctuation in the world economy.

"In the face of social and economic changes in the days to come, we must uphold the principle of prudent management of public finances and strive to take pragmatic relief measures. This will involve greater wisdom and courage," he concluded. (1 U.S. dollar = 7.76 HK dollars)