Budget deficit

Stance to the government policies

Cut the size and payment of the civil servants

agree

high salary of the civil servants which is the largest part of the expenditure of the government

Reduction in Educational Expenditure Disagree As education is fundamental for a

society, cutting expenditure on education will have a long-term disastrous effect to the whole society. If expenditure is cut, the quality of education will be largely affected. Thus, Hong Kong will become a society without capable talents despite its absence of fiscal deficit.

Amendment to the Requirement of Applicants of Social Welfare Social welfare is a safety need for the gov

ernment and the whole society. The government can tighten the requirements of getting social welfare, but not to cut the expenditure. It is because the SAR government is weak and cannot bear further more social discontent and instability.

Increase Tax :Disagree Salaries tax

Decrease working intensive Lower productivity

Profit tax Discourage investment

Decrease aggregate demand Property tax

Discourage housing market Decrease housing consumption

Increase Tax :Agree

Motor vehicles first registration tax Solve traffic congestion

Increase revenue

Air departure tax Affect tourism to a limited extent

Increase revenue

Proposed new taxes :Agree

Football betting duty∵demand of betting quite inelastic

→∴can increase government revenueBoarder tax: broaden tax baseSales tax: bring signaling effect, involves a lot of

transaction costs affect people’s consumption-saving choice,

large market distortion

Issue bonds

Disagree not a good way to solve deficit:

insufficient demand

only for fund infrastructure projects

Selling or securitizing assets /privatization of government assets Agree

1. Can bring a short term revenue2. Lower down the cost, improve the efficiency~ since government enterprises are often criticized for their high cost & inefficiency3. Lower down the risk of running into a loss4. Increase the investment channels for the public5. Increase the capital mobility~ can use the revenue which gain from this action to do other economic activities to help to raise revenue6. Can gain foreign currency~ by providing the mentoring service to foreign company (like the MTR)

Cutting the expenditure on social welfare

Disagree Induced consumption will be lowered

as disposable income becomes smaller

equilibrium level of national income will be lowered

∵ HK has not reach full employment ∴more workers will be unemployed

Restructuring the expenditure pattern

The expenditure government quite ineffective According to Report No. 41, October

2003 by Audit Commission E.g. Education expenditure