-41K.3
Fiscal deficit
112.
Another point made by the Government on a number of occasions in
seeking to justify the seven-year rule involves reference to the restriction being
imposed a “against the background of a serious fiscal deficit”:
“Against the background of a serious fiscal deficit and the implication of demographic
trends and characteristics identified in the [Task Force] Report, the Administration
took the view that there was a strong case for applying a uniform 7-year residence
requirement for providing heavily subsidized social services.”104
113.
It is significant that the deficit is put no higher than a “background”
feature. It is also significant that when Stock VP referred to this, he spoke of
“the fiscal deficit at the time of the decision”. Judicial notice may be taken of
the following figures derived from the annual accounts published by the
Government:105
Year
HK$ millions
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
114.
Net Surplus
/Deficit
(43,384)
10,979
(restated)
19,434
48,974
(restated)
124,867
179,343
(133,103)
145,252
96,724
Operating
revenue
151,244
167,014
Operating
expenses
(210,727)
(212,188)
Expenditure on
social security
(21,815)
(22,860)
Exchange Fund
surplus (deficit)
31,488
65,738
192,369
231,156
(207,827)
(206,907)
(23,247)
(23,444)
24,571
33,165
223,627
265,269
250,609
242,133
274,637
(208,318)
(218,835)
(251,775)
(251,376)
(247,132)
(23,185)
(24,130)
(27,466)
(27,959)
(25,928)
65,887
63,821
(146,429)
116,309
50,037
The figures show that there was indeed a net deficit in the year
ended 31 March 2003. However, the figures indicate that the seven-year rule
was not introduced to cut spending so as to rein in that deficit. They also show
that such deficit was not a persistent feature of Government finances. The
figures suggest that the key determinants of whether there would be a net
104
Mr Cheung’s Affirmation, §55.
105
Available online at http://www.try.gov.hk/internet/eharch_annual.html.
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