First, the good news. The SCMP reports:

A $21.4 billion surplus has been recorded for the 2004-05 financial year, largely a result of additional receipts from land premiums, salaries tax and stamp duty.

The surplus was $9.4 billion above the revised estimate of $12 billion announced in the 2005-06 budget, with spending $7.5 billion lower than forecast. Revenue amounted to $263.6 billion while spending totalled $242.2 billion. Fiscal reserves stood at $296 billion on March 31, $20.7 billion more than in the previous year.

Now the bad news. Hong Kong was given the equestrian events of the 2008 Olympics. Which simply means the Hong Kong Jockey Club, a de facto Government agency, will spend $800 million in a land grab for an event which even the Government admits doesn't add up economically. And as if that's not enough, there are reports that Shanghai has now set aside land for a new Disneyland park and are hoping to have it open by the 2010 Expo, although naturally Disney are playing it down. Hong Kong Disneyland is effectively a Hong Kong Government venture and was lavished with public funds because it was to be Disney's only Chinese venture. Shame the Government forgot to insert that into the contract.

It's all good for the horse-loving mouseketeers of this town. It's not for the taxpayers.

Update 11th July

New Disney CEO lays out his China plans, specifically stating plans to open a park on the mainland.