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

If you were the Government, how will you propose the government to solve the fiscal budget?. Raising Revenue. Increasing Motor Vehicle First Registration Fee - should be progressive - cars are luxury goods, most people will not be affected -may help to solve traffic congestion

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

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  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 - should be progressive - cars are luxury goods, most people will not be affected -may help to solve traffic congestion • 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

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

  4. Privatizing the public business -government has many public business e.g. KCR, tunnels, Post Office -can get large sum of money immediately • Selling Government assets -many assets are idle now e.g. unsold HOS (Home Ownership Scheme), premises -idle assets cannot bring any revenue to the 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 -may have disincentive: ↓investment → ↓y • Land Revenue -there is excess supply of land now -example, number of premises above MTR stations are limited

  6. Controlling public expenditure • 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 -most private sectors also reduced the employees’ salary -Show the determination of the government to eliminate the fiscal budget

  7. Efficient use of resources -combine departments to reduce unnecessary expenditures -every department should hand in the financial report for examination • 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

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