For 2001-02, we are on target to deliver
2% savings. Bureaux, departments and subvented organizations together
will release some $2,000 million from the baseline operating expenditure.
These savings, as with those achieved in 2000-01, will be redeployed
for new or improved services.
In fact, during the first year of implementation
of EPP, we have achieved savings of 1.2 % , or $1,148 million which
is slightly over the set target. The full amount has been redeployed
to fund new and improved services.
Bureaux, departments and subvented
organizations so far have been able to deliver the target savings under
EPP. They have made extra effort to ensure that there is no deterioration
in the quality of public service as a result of the implementation of
EPP. They have also make use of their savings to implement new initiatives
and improve further their existing services.
To enable the public to monitor how
well the bureaux, departments and subvented organizations deliver EPP,
we have published the third annual booklet which reports on how we achieve
the productivity gains, the initiatives on new or improved services
provided through the savings achieved, and measures taken by us to safeguard
the quality of service and support the implementation of EPP.
We are confident that our continued good work will enable us to meet the overall target of 5 % productivity gains by the year 2002-03.