1 If you were the Government, how will you propose the government to solve the fiscal budget?

2 Raising Revenue Increasing Motor Vehicle First Registration Fee Increasing Motor Vehicle First Registration Fee - should be progressive - cars are luxury goods, most people will not be affected affected -may help to solve traffic congestion Increasing betting Increasing betting -should be increased to a higher rate, e.g.. 19%-21% -do not affect the economic recovery very directly -may stop people from betting -hence reduce the social problems and the need of social welfare caused by betting social welfare caused by betting

3 Imposing Sales Tax Imposing Sales Tax -can increase government revenue immediately -on luxurious goods and non-necessities -increase step by step Issuing Bonds Issuing Bonds -good way to raise revenue for meeting emergency problem such as unemployment problem such as unemployment -alternative for increase taxes -internal bonds do not represent a burden for future generation generation

4 Privatizing the public business Privatizing the public business -government has many public business e.g. KCR, tunnels, Post Office e.g. KCR, tunnels, Post Office -can get large sum of money immediately Selling Government assets Selling Government assets -many assets are idle now e.g. unsold HOS (Home Ownership Scheme), premises e.g. unsold HOS (Home Ownership Scheme), premises -idle assets cannot bring any revenue to the government government -make idle assets become fully utilized

5  Increasing Income Tax - only suitable for increasing standard tax rate  Increasing Profit Tax -can be increased to a higher tax rate -proposed tax rate is still lower than the neighbouring countries countries -may have disincentive: ↓investment → ↓y  Land Revenue -there is excess supply of land now -example, number of premises above MTR stations are limited are limited

6 Controlling public expenditure Reducing the salaries of civil servants Reducing the salaries of civil servants -it is a large part of government expenditure -suitable to do it step by step -high position officers’ salaries should be reduced proportionately more proportionately more -most private sectors also reduced the employees’ salary -Show the determination of the government to eliminate the fiscal budget the fiscal budget

7 Efficient use of resources Efficient use of resources -combine departments to reduce unnecessary expenditures expenditures -every department should hand in the financial report for examination examination Reducing the operating expenditure Reducing the operating expenditure -each government should borne form the reduction -should not affect the services provided now  Reducing the size of civil servant -lead to unemployment -political factor