As Hong Kong's economy continues to expand, Secretary for Financial Services & the Treasury Frederick Ma anticipates the Government's financial situation will be better than expected.

Speaking on a radio talk show today, Mr Ma said the booming stock market coupled with good land-sale results have boosted the Government's total revenues.

This situation could change if the economy suddenly faces a downturn, he said.

Although the Government still feels that the goods and services tax is the best way to broaden the tax base, it will not advocate the proposal as the only option in solving the narrow tax base problem as more than 60% of people are against it, he said.

Mr Ma said the Government does not foresee a fiscal problem in the next three to five years, but the narrow tax base still must be addressed.