• Economic Updates
• Government Expenditure

We need to maintain an adequate level of reserves so that there is sufficient resources to cope with unfunded liabilities, commitments and fiscal pressure arising from economic downturns, unforeseen events or structural changes in the community, to generate investment income and to assist the Exchange Fund in maintaining the stability of Hong Kong’s monetary and financial systems when needed.

As at 31.3.2010, the present value for public officers pension obligations amounted to $470 billion. Outstanding commitments for capital works projects as at 30.6.2011 was $215 billion. In the six financial years from 1998-99, five deficits reduced the reserves by some $200 billion.