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Corporate Plan 2005 / 06 Decoration Image
Corporate Plan 2005 / 06 Decoration Image
Corporate Vision
1. Corporate Profile
2. Corporate Strategies
3. Mid-year Performance Review of 2004/05 Corporate Plan
4. Key Activities in 2005/06
5. Key Performance Indicators
6. Consolidated Budgets
 

6. Consolidated Budgets

The Housing Authority (HA) is financially autonomous and does not receive funds from the Government or external sources for its public housing programmes.

Although the HA's expenditure does not form part of the Government's expenditure, it represents an important element of the overall public sector spending. In 2004 / 05, this accounted for approximately 6.8% of the total public expenditure. A summary of the income and expenditure items of the HA's Revised Budget for 2004 / 05 and proposed budget for 2005 / 06 is set out below.

  Revised Budget
2004 / 05
($M)		 Proposed Budget
2005 / 06
($M)
Operating Income
  17,688  
  19,464  
Operating Expenditure[13]
  16,330  
  16,707  
Capital Expenditure
  8,603  
  6,159  


 Consolidated Operating Account Budget
 Cash Budget
 Capital Expenditure Budget


CONSOLIDATED OPERATING ACCOUNT BUDGET

The consolidated operating surplus is budgeted at $15,030 million for 2005 / 06. A summary is set out below.

Summary of Operating Surplus / (Deficit) ($M)
  Rental
Housing		 Commercial Home Ownership
Assistance		 Special
Items[14]		 Consolidated Operating Surplus
2004 / 05
Revised Budget
  576  
  1,230  
  (634)  
  (671)  
  501  
2005 / 06
Proposed Budget
  511  
  1,589  
  570  
  12,360  
  15,030  


CASH BUDGET

The budgeted cash flow and closing cash balances are summarized below.

Summary of Cash Flow ($M)
  Net Cash Outflow
for the year		 Closing Cash
Balance
2004 / 05 Revised Budget
  (4,130)  
  13,170  
2005 / 06 Revised Budget
  27,870  
  41,040  

The HA's cash balance is forecast to drop progressively from $17.3 billion at 31 March 2004 to $13.2 billion by end March 2005. The HA's cash balance at 31 March 2006 is projected to be $41.0 billion mainly due to the recognition of the proceeds from divestment by end March 2006[15] (gross proceeds estimated at $32 billion for budgetary purpose). The projected cash position has not taken into account the outcome of the judicial review concerning the Authority's decisions to defer rent reviews, which may have grave implications for the HA's cash position.


CAPITAL EXPENDITURE BUDGET

Capital expenditure is budgeted at $6.2 billion in 2005 / 06. The capital budgets are summarized below.

Summary of Capital Expenditure ($M)
  Revised Budget
2004 / 05		 Proposed Budget
2005 / 06
Construction Expenditure
  5,182  
  3,971  
Purchase of Private Sector Participation Scheme Flats
  1,441  
  -  
Improvement Works
  385  
  563  
Computer Assets
  93  
  113  
Direct Costs and Overheads charged to Construction, Improvement Works and Computer / Information Technology Projects
  1,502  
  1,512  
Total
  8,603  
  6,159  

As compared to the 2004 / 05 Revised Budget, the proposed capital expenditure budget for 2005 / 06 drops by $2,444 million (or 28%). The decrease mainly reflects a lower average number of flats under construction in the budgetary period[16].


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