Curbing Expenditure and Enhancing Productivity

145. We firmly believe in the principle of 'small government'. In the long term, we need to simplify our organisational structure, curb government spending and progressively lower the proportion of public expenditure to Gross Domestic Product. This will allow the free market forces to come into play.

146. Last year, we implemented a Voluntary Retirement Scheme for the civil service. So far, about 9 000 early retirement applications have been approved. Most of these civil servants will gradually retire this year and over time we will see annual savings of almost $1 billion.

147. Government bureaux and departments have also adopted enhanced productivity measures to increase their efficiency and to reduce expenditure. This will allow annual savings of $6 billion starting from 2002-2003. All savings will be used to meet the community's needs. This clearly demonstrates the commitment of the civil service to enhance efficiency.