Secretary for Financial Services & the Treasury Frederick Ma says the Budget considers the economy and community, and is not just a decision on tax.

Speaking on a radio talk show today, Mr Ma said the budget aims to build a stable and strong economy, and the surplus this year can only be seen as a new dawn after several years of deficit.

He said factors like interest rates, oil prices and bird flu are uncertainties that affect the economy, and the Government must not be too optimistic in its outlook. Asking for a large scale tax cut as a result of the surplus is an over simplification of the matter.

In response to some accounts saying the surplus has been underestimated by $10 billion, Mr Ma said they did not have the whole Government account at hand. Budget preparation started in December and estimations are based on November's data, so it is natural for the actual surplus to deviate.

On goods and services tax, Mr Ma said there is a need to study widening the tax base to raise income stability.

In response to a caller's worry that introducing GST may force more people to go shopping on the Mainland, Mr Ma said the main reason is difference in prices, adding there is also GST there. He urged people to voice their opinions in the coming nine-month consultation.

Mr Ma also agreed to a caller's view that more resources should be allocated to basic education, saying the sector already accounts for 24% of total expenses and that the Government must continue to invest in education to cope with the transition to a knowledge-based economy.