Q18. Which bill and order are related to the Budget ? What is the legislative procedure?

• The budget proposals comprise two parts - expenditure and revenue proposals. The former will be included in the Appropriation Bill while the latter will be introduced in one or more omnibus Revenue Bill(s).

• The Appropriation Bill will be introduced into Legislative Council (LegCo) on the Budget Day with a view to its enactment in April.  The Revenue Bill(s) will normally be introduced shortly after the Budget Day, with a view to enacting the required legislative amendments before the LegCo summer break. The procedures will be similar to those applicable to any other piece of legislation to be considered by LegCo. For revenue proposals which need to come into effect on Budget Day or before the enactment of the enabling legislation, we may bring them into effect under a Public Revenue Protection Order (which will expire four months from the date it comes into force) made by the Chief Executive, pending the passage (or otherwise) of the relevant legislative proposals in LegCo.

Q19 Why are the International Monetary Fund (IMF) and credit rating agencies interested in our fiscal situation and budget strategy? Why do we need to accord importance to their views?

• Yes, the IMF and international credit agencies are watching closely our fiscal position and how we manage public finances. Our performance in these areas are taken as indicators of whether Hong Kong has a solid foundation in public finance to support the stability and prosperity of the economy. Prudent public finance management instil investors' confidence and promote economic growth.

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