Public Finances

143.    As Financial Secretary, I am obliged to ensure that our public finances are sustainable and can embrace the short, medium as well as long-term needs and development of Hong Kong.  Government expenditure will be directed where required in line with our policies.  Government revenue will be built around a simple and low tax regime, avoid over reliance on one or two types of tax and adhere strictly to the "user pays" principle.  In drawing up the Budget, we must follow the principle of keeping expenditure within the limits of revenue, avoid deficits, and keep the budget commensurate with economic growth.