1

If you were the If you were the Government, how will you Government, how will you propose the government to propose the government to

solve the fiscal budget?solve the fiscal budget?

2

Raising RevenueRaising Revenue Increasing Motor Vehicle First Registration FeeIncreasing Motor Vehicle First Registration Fee

- should be progressive- should be progressive- cars are luxury goods, most people will not be- cars are luxury goods, most people will not be

affectedaffected

-may help to solve traffic congestion-may help to solve traffic congestion

Increasing bettingIncreasing betting-should be increased to a higher rate, e.g.. 19%-21%-should be increased to a higher rate, e.g.. 19%-21%-do not affect the economic recovery very directly-do not affect the economic recovery very directly-may stop people from betting-may stop people from betting-hence reduce the social problems and the need of -hence reduce the social problems and the need of

social welfare caused by bettingsocial welfare caused by betting

3

Imposing Sales TaxImposing Sales Tax-can increase government revenue immediately-can increase government revenue immediately

-on luxurious goods and non-necessities-on luxurious goods and non-necessities

-increase step by step-increase step by step

Issuing BondsIssuing Bonds

-good way to raise revenue for meeting -good way to raise revenue for meeting emergencyemergency

problem such as unemploymentproblem such as unemployment

-alternative for increase taxes-alternative for increase taxes

-internal bonds do not represent a burden for -internal bonds do not represent a burden for future future

generationgeneration

4

Privatizing the public businessPrivatizing the public business-government has many public business-government has many public business

e.g. KCR, tunnels, Post Officee.g. KCR, tunnels, Post Office

-can get large sum of money immediately-can get large sum of money immediately

Selling Government assetsSelling Government assets-many assets are idle now-many assets are idle now

e.g. unsold HOS (Home Ownership Scheme), e.g. unsold HOS (Home Ownership Scheme), premisespremises

-idle assets cannot bring any revenue to the -idle assets cannot bring any revenue to the

governmentgovernment

-make idle assets become fully utilized-make idle assets become fully utilized

5

Increasing Income TaxIncreasing Income Tax- only suitable for increasing standard tax rate- only suitable for increasing standard tax rate

Increasing Profit TaxIncreasing Profit Tax-can be increased to a higher tax rate-can be increased to a higher tax rate-proposed tax rate is still lower than the neighbouring -proposed tax rate is still lower than the neighbouring countriescountries-may have disincentive: -may have disincentive: ↓investment → ↓y↓investment → ↓y

Land RevenueLand Revenue-there is excess supply of land now-there is excess supply of land now-example, number of premises above MTR stations-example, number of premises above MTR stations are limitedare limited

6

Controlling public expenditureControlling public expenditure

Reducing the salaries of civil servantsReducing the salaries of civil servants-it is a large part of government expenditure-it is a large part of government expenditure

-suitable to do it step by step-suitable to do it step by step

-high position officers’ salaries should be reduced -high position officers’ salaries should be reduced

proportionately moreproportionately more

-most private sectors also reduced the -most private sectors also reduced the employees’ salaryemployees’ salary

-Show the determination of the government to -Show the determination of the government to eliminateeliminate

the fiscal budgetthe fiscal budget

7

Efficient use of resourcesEfficient use of resources-combine departments to reduce unnecessary-combine departments to reduce unnecessary expendituresexpenditures-every department should hand in the financial -every department should hand in the financial report forreport for examinationexamination

Reducing the operating expenditureReducing the operating expenditure-each government should borne form the -each government should borne form the reductionreduction-should not affect the services provided now-should not affect the services provided now

Reducing the size of civil servantReducing the size of civil servant-lead to unemployment-lead to unemployment-political factor-political factor