}
STAD'S Cap 1-8 +1
a
8 h
I
oded refuton behaver Sube
BAC 21
121
(1)
Framework for basic economic analysis to be made for each recipient of U.K.. budgetary aid
Assess size and pattern of recurrent budget expenditure by main heads, say from 1950 to latest budget, noting the emphasis given to recurrent expenditure or development purposes, c.g. on agricultural extension services, education, health etc., as opposed to other administrativę expenses.
(2) Assess size and pattern of development budget expenditure during the same period, noting the impact that this development expenditure has had on the level of subsequent recurrent expenditure.
(3)
Assess the balance of trade and payments associated with the past level of recurrent and development expenditure.
(4) Assess the real resources available for
(5)
A provision of common services and other recurrent expenditure, (b) development budget,
foreign exchange earnings.
This would include an assessment of population trends, income per head, distribution of income, propensity to save etc..
Assess the degree to which the government has in practice mobilised these domestic resources (since 1950) (a) to provide common services etc; (b) to promote development; and (c) to earn foreign exchange,
This would include an assessment of the size and pattern of recurrent budget revenue since 1968, and of the extent and character of government domestic borrowing
(6) Assess the degree to which the government could reasonably be expected to mobilise more of these domestic resources (a) to provide common services etc; (b) to promote development; and (c) to earn foreign exchange.
This would include an assessment of taxable capacity and of the potential for government domestic borrowing
(7) Assess the part played by aid (U.K. and other donors') since 1960 in filling:
(a) the resource gap between the domestic resources mobilised and the
actual level of expenditure on both recurrent and development account.
(b) the foreign exchange gap between actual foreign exchange earnings and
payments.
(8) Assess the future level and pattern of the récurrent expenditure budget, based only on decisions already taken, but including the subsequent impact on the recurrent expenditure budget of development expenditure which has already been authorised. Where the pattern of this future recurrent expenditure is thought to be unsound, is it to be regarded as an unalterable fixed commitment, is there any reasonable prospect of changing it?
(9) Assess future requirements for development, distinguishing between
A
(a) development projects which are likely to earn an acceptable sociai
.
return.
(b) expenditures which can be justified solely on welfare grounds by the need to raise per capita income to some minimum level (or to improve ita distribution) and/or to provide employment, .e. expenditures which are unlikely to yield an acceptable devolopment return even at Eero shadow wage rates.