2. Budget deficit Stance to the government policies

3. Cut the size and payment of the civil servants aagree hhigh salary of the civil servants which is the largest part of the expenditure of the government

4. 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.

5. Amendment to the Requirement of Applicants of Social Welfare  Social welfare is a safety need for the government 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.

6. 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

7. Increase Tax :Agree  Motor vehicles first registration tax Solve traffic congestion  Increase revenue  Air departure tax Affect tourism to a limited extent  Increase revenue

8. Proposed new taxes :Agree Football betting duty ∵ demand of betting quite inelastic → ∴ can increase government revenue Boarder tax:  broaden tax base Sales tax:  bring signaling effect, involves a lot of transaction costs  affect people ’ s consumption-saving choice, large market distortion

9. Issue bonds  Disagree not a good way to solve deficit: insufficient demand  only for fund infrastructure projects

10. Selling or securitizing assets /privatization of government assets  Agree 1. Can bring a short term revenue 2. Lower down the cost, improve the efficiency ~ since government enterprises are often criticized for their high cost & inefficiency 3. Lower down the risk of running into a loss 4. Increase the investment channels for the public 5. Increase the capital mobility ~ can use the revenue which gain from this action to do other economic activities to help to raise revenue 6. Can gain foreign currency ~ by providing the mentoring service to foreign company (like the MTR)

11. 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

12. Restructuring the expenditure pattern  The expenditure government quite ineffective According to Report No. 41, October 2003 by Audit Commission E.g. Education expenditure