2005-06 Outturn
17. I am confident that, with Government's efforts to rein in our expenditure combined with strong economic growth, we shall be able to achieve, three years ahead of schedule, all three fiscal targets that I set in my first Budget in 2004:
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operating expenditure reduced to less than $200 billion in 2004?5 and 2005?6;
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fiscal balance restored in the Operating and Consolidated Accounts starting from 2005?6: the first time since 1997?8 that both accounts have recorded a surplus; and
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public expenditure as a proportion of GDP lowered to and remaining below 20 per cent from 2004?5.
18. For 2005?6, I am forecasting a surplus in the Operating Account of $5.8 billion. This is mainly due to higher revenue from salaries and profits taxes and lower expenditure. Operating expenditure for 2005?6 will be $194.7 billion, down from $196.9 billion in 2004?5. For the second successive year, following a half-century gap, we have achieved lower expenditure than in the preceding year. My sincere appreciation goes to the civil service for realising the various savings initiatives. I wish also to thank the community for its strong support for the Government's work. In the Consolidated Account, I estimate that a surplus of $4.1 billion will be achieved in 2005?6.
