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Recurrent public expenditure is expected to grow by 6.4% in real terms over the revised
estimate for 1998-99. Recurrent government expenditure will grow by 6.5 %. This year-on-year
growth in recurrent government expenditure exceeds the forecast trend growth rate of GDP as a result
of underspending in 1998-99. Recurrent government expenditure in 1999-2000 is planned to increase
by 3.5% in real terms over the spending plans for 1998-99 published a year ago. Due to the contraction
of the economy in 1998, the cumulative real growth in government expenditure has now outstripped the
real growth in GDP.
The major improvements in services in 1999-2000 in the
Education,
Health,
Social Welfare and
Security policy areas are detailed on
Policy Areas with Major Growth in Recurrent Expenditure in 1999-2000
.
The significant changes in other policy areas are:
Community and External Affairs (+7.0%)
The increase reflects the provision of additional resources for promoting improved
management of private multi-storey buildings as well as increased spending by the two
municipal councils.
Economic (+2.8%)
The increase reflects the provision of additional resources for strengthening the
protection of intellectual property, the enforcement of trade controls, encouraging the
wider use of IT in the community and the promotion of tourism.
Environment (+3.7%)
The increase reflects the provision of additional resources for co-ordinating the
implementation of the Waste Reduction Plan and increased operating costs of waste disposal
facilities.
Housing (+5.3%)
The increase reflects the additional recurrent spending of the Housing Authority.
Infrastructure (+4.8%)
The increase reflects the additional resources for planning and implementing road
and rail projects, for demolishing unauthorised rooftop structures and for the maintenance
of slopes on government land.
Support (+9.9%)
The year-on-year increase arises largely as a result of the considerably lower than
anticipated expenditure in 1998-99 on civil service pensions due to a smaller number of retirees.
There are also additional resources for the 1999 district organisations elections and preparations
for the next Legislative Council election.
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