Money matters: Financial Secretary John Tsang attends a Budget forum in Kwun Tong.

Financial Secretary John Tsang says his first Budget to be announced next month will outline ways to promote Hong Kong's long-term economic development and explain how to make good use of the fiscal surplus to respond to the community's aspirations.

Speaking at a Budget forum this afternoon Mr Tsang said due to recent strong development in the property and stock markets the fiscal surplus will be larger than expected.

However, the Government must manage the surplus prudently because Hong Kong's economy is externally-oriented and the US' future economic situation is worrying, he added.

Inflation monitored

Mr Tsang said prices in Hong Kong are rising quite fast and the Government will closely monitor the situation.

As most of the food available in Hong Kong is imported it is important to ensure a stable food supply.

"Provided that there is a stable supply, the market will automatically make price adjustments," he said, adding the Government will not intervene in market operation.

Showing great concern over the wealth gap Mr Tsang admitted some people are unable to share in the recent economic growth.

Underprivileged considered

New measures will be introduced to enhance the city's economic development and upgrade the underprivileged's productivity.

The Government will also study ways to make good use of the fiscal surplus to help them.

On rent hikes, the secretary said the Government will include more land lots in the Application List, hoping the move will lead to more land sales and increased market supply. He believed an increased supply will help ease rent hikes.