As we race headlong towards the end of the year, we are living through interesting and challenging times in Hong Kong - times that bring with them as many grounds for being fearful as there are reasons to be cheerful.
On the positive side, our economy is booming, unemployment is creeping down, property prices have recovered strongly and we can justifiably be buoyant and optimistic about our prospects in the coming year.
On the negative side, with the spread of the H5N1 bird flu virus in the mainland and elsewhere around the region, we face one of the most serious potential health crises of our lifetimes - one that would overshadow even the catastrophic Sars outbreak of 2003.
To be effective, politics and economics must function together and in the real world: it is crucial that, in the coming budget, Financial Secretary Henry Tang Ying-yen addresses the twin realities that Hong Kong is facing.
In order to do this, we in the Liberal Party believe he must introduce a range of measures that will maintain and enhance our continuing prosperity and, at the same time, prepare us for the possibility of a bird flu pandemic. In his budget, Mr Tang must first ensure that we have the tools to do the job of fighting H5N1.
Only when we are confident that we have done all we can to guard ourselves against the threat of bird flu can we turn our attention to our own economic well-being.
While we appreciate the preparation work the government has done so far, it is important that the public is told more about the practicalities of what to do if there is a bird flu outbreak.
Economically, however, we have reached a stage where the dividends of recovery must be shared out and the burden of tax - which the middle class has been saddled with to carry us through the hard times - is eased.
As interest rates rise, that burden is becoming more onerous, and we believe the financial secretary should use his budget to restore the salary tax to 2002-2003 levels over a two-year period.
Property interest rates, too, should be brought down by half a percentage point from their current level of 5 per cent to 4.5 per cent. Residential rents have gone up by 10 per cent and commercial ones by 40 per cent in the past year. Even with the drop in percentage terms, the government's income from rates would remain close to, or even higher than, last year's level of $13.8 billion. In order to make mortgages more affordable for homeowners and to encourage stability in property prices, we believe the deduction for home loan interest should be changed from a seven-year grant to a permanent grant.
We do not see a need for the corporate profits tax to be reduced now. With the economy doing better, businesses can afford to carry on paying at the current rate of 17.5 per cent. The emphasis should, instead, be on helping the middle class.
However, for businesses, we would like to see a reduction in red tape to make development and job creation less cumbersome. Mr Tang could help move us towards this by eliminating outdated, unnecessary and excessive government regulations and laws on business.
Finally, while we appreciate the chief executive's aim of improving governance, we would like to make sure that policy does not become a road towards a top-heavy administration. If we are to see an increase in government directorate posts, we want to know the justification. If they provide broad benefits and help the business environment, we will support them.
In the forthcoming budget, Mr Tang needs to be a good doctor in two different specialities: first, giving us the medicine to deal with the threat of bird flu; and second, giving our economy the tonic it needs to continue its current growth.
In these interesting and challenging times, it is vital he succeeds on both fronts.
James Tien Pei-chun is chairman of the Liberal Party