Revenue view: Financial Secretary Henry Tang attends a budget forum to listen to public views on his forthcoming budget.

If the economic situation allows it, the Government will not raise taxes in the March 16 Budget, Financial Secretary Henry Tang says.

Speaking at a forum today, Mr Tang said in view of an economic revival, revenues in a number of areas such as land sales are better than expected.

The public will have certain expectations, which makes this year's budget preparation more difficult than last year's.

However, he said the Government should not be over-reliant on non-recurrent income to pay for recurrent expenditure.

Targets met

Most of the targets laid down in the last budget have been met, including the creation of more job vacancies. Up to now more than 130,000 jobs have been created.

He said he understands the thinking of the middle class and requests to cut taxes are under consideration.

Mr Tang said he will adopt a pragmatic approach in preparing the budget and the target to achieve fiscal balance by 2008-09 remains unchanged.

On the Government's appeal against the court rulings on the civil service pay reduction, Mr Tang said if the Government lost the case, there would be a negative effect on its financial situation. However, the Government will respect the rule of law.