The Budget optimally allocates the Government's estimated $138 billion surplus for 2017-18, Chief Executive Carrie Lam says.

Speaking at today's Chief Executive's Question Time session at the Legislative Council, she said the surplus will be used to invest in the future and to implement caring and sharing measures.

The Budget also proposed to commit additional resources to implement Policy Address initiatives such as an extra recurrent expenditure of $2 billion on top of the $5 billion already earmarked for new education resources.

Mrs Lam said the Government will not just accumulate financial resources, adding the Budget has taken the need for long-term development in education, healthcare and elderly services into account.