Revised Estimates for 2015-16

159.    The revised estimate for government revenue for 2015-16 is $457 billion, 4.2 per cent or $20 billion lower than the original estimate.  It reflects mainly the provision of $45 billion for the Housing Reserve and changes in different incomes.

160.    Revenue from land sale is $8 billion or 11.6 per cent lower than the original estimate because some sites were unable to be disposed of as scheduled.  Given the fluctuation of the Hong Kong stock market, with trading hectic in the first half of the year, stamp duty revenue for the whole year is $14 billion or 28 per cent higher than the original estimate.  The total revenue from salaries tax and profits tax is $17 billion or 8.9 per cent higher than originally estimated.

161.    As for government expenditure, I forecast a revised estimate of $427 billion, 3.1 per cent or $14 billion lower than the original estimate.  This is mainly because the Finance Committee may not be able to complete as scheduled the deliberation on the proposed endowment of $10 billion to HA for public-private partnership initiatives in 2015-16.

162.    For 2015-16, I forecast a surplus of $30 billion.  Fiscal reserves are expected to reach $860 billion by 31 March 2016, equivalent to 24 months of government expenditure.