Revised Estimates for 2016-17

55.    The 2016-17 revised estimate on government revenue is $559.5 billion, 12 per cent or $61.3 billion higher than the original estimate.  This is due mainly to the increase in revenue from land sales and stamp duty.

56.    Revenue from land sales is $50.8 billion or 76 per cent higher than the original estimate, demonstrating yet again that land revenue has always been highly volatile and vulnerable to market fluctuations.  It was only in 2015-16, when revenue from land sales was nearly $9.1 billion lower than estimated as some sites were unable to be sold.  As a result of a period of hectic trading in the property market last year, stamp duty revenue for the whole year would be $8 billion or 16 per cent higher than estimated.

57.    As for government expenditure, I forecast a revised estimate of $466.7 billion, 4.1 per cent or $20.2 billion lower than the original estimate.  This is mainly because the $10 billion set aside for the Hospital Authority Public-Private Partnership Fund in the original estimate was advanced and allocated in 2015-16.

58.    For 2016-17, I forecast a surplus of $92.8 billion.  Fiscal reserves are expected to reach $935.7 billion by 31 March 2017.