Government estimates $4.9b deficit in 2013-2014

Check out these figures forecast.

Financial Secretary John Tsang said that the government is forecasting a small deficit of about $4.9 billion in the coming year. He adds that the government shall largely achieve fiscal balance. 

"Fiscal reserves are estimated at $729.1 billion by end-March 2014, representing approximately 34 per cent of GDP or equivalent to 20 months of government expenditure."

Here are some excerpts from his 2013 Budget Speech:

Operating expenditure for 2013-14 is estimated to be $352 billion and recurrent expenditure will be $291.3 billion, representing an increase of 15.5 per cent and 10.5 per cent respectively over the revised estimate for 2012-13.

It is estimated that capital expenditure will be $88 billion, including $70.1 billion on capital works. I forecast that total government expenditure will reach $440 billion, an increase of 15.6 per cent compared with the revised estimate for 2012-13. Public expenditure will be equivalent to 21.7 per cent of GDP.

The increases in expenditure, both total and recurrent, for 2013-14 far exceed the estimated nominal GDP growth of 5.5 per cent in 2013.

This clearly demonstrates that the current-term Government upholds the principle of committing resources as and when needed to provide appropriate services for the community.

Total government revenue for 2013-14 is estimated to be $435.1 billion. Earnings and profits tax, estimated at $189.4 billion, will be our major source of revenue. Land revenue is estimated at $69 billion.