On air: Financial Secretary Henry Tang says it was not easy to prepare this year's Budget as the economic recovery has raised the public's expectations.

Financial Secretary Henry Tang says it was not easy to prepare this year's Budget as the economic recovery has raised the public's expectations.

Speaking on a radio programme today, Mr Tang said the Budget has won the support of economic expects and those familiar with the principle of public finance.

He said he will not spend lavishly for the sake of winning short-term applause, adding he has to uphold the principle of prudent management of public finances.

Despite the strong economic recovery, there are still uncertainties in the economic outlook, he said, adding the Government must be prudent and spend within income limits.

He said it is not appropriate to introduce a tax rebate as it would turn next year's Budget into a deficit.

Speaking at the FS Meets the Public forum tonight, Mr Tang said the Budget has not neglected the need of disadvantaged groups.

A number of new measures have been proposed to help the poor get jobs. These include providing short-term travel support on a trial basis for residents living in remote areas. It shows the Government's strong commitment to the needy, he said.

When asked why he did not cut the rates charge in the Budget, Mr Tang said although rates are on the rise after falling for several years, rateable values are still nearly 30% below their peak.

While ratepayers will see an increase in their rates bill, Mr Tang said this will only be about $15 a month on average.