・
-5.
か
XCC(75)8
Financial considerations
17
Since the UPGC submitted its recommendations, the overall budgetary position for 1975-76 has been established. Because,of the sluggish state of the economy and the consequential lack of growth of revenue, on the one hand, and rising costs, on the other, it has been necessary to enter provision for expenditure as a whole in the 1975-76 draft Estimates at a level substantially lower than intended a year ago. This reduction in expenditure has been achieved by postponing the implementation of virtually all new policies and the expansion of existing services. In addition, it has been necessary to cut back on some services and to postpone parts of the Public Works Programme. Nevertheless, provision has been included in the draft Estimates for Phase I of the development of the Polytechnic to proceed; this is necessary because the Polytechnic will have to give up its temporary accommodation in Quarry Bay. So if the Appropriation Bill becomes law without any change to the head of expenditure for the universities and the Polytechnic, it should be possible for contracts to be let in 1975-76. But there is the alternative possibility that temporary accommodation can be found for the Polytechnic in the Hung Hom area. This possibility is being explored.
18
However, for the universities, it has not proved possible to include provision for new contracts under the approved programme which includes hostels and staff housing. Provision included for the univer- sities is limited to projects for which contracts have already been let. The Secretary, UPGC, is of the opinion that to postpone in this way for as long astwoyears would not affect the planned expansion of student numbers at the universities.
19
In consequence, the amount entered in the draft Estimates for capital works at the universities and the Polytechnic is $81.9 million. This compares with $121.9 million agreed with Secretary, UPGC, as necessary for the works to proceed as approved and the $60 million limit within which capital expenditure on the universities and the Polytechnic should be contained as postulated in the 1974 budget debate.
20
An additional point is that contracts for Phase II of the Polytechnic and for the universities' programme should not be let without considering the possible budgetary situation in 1976-77 and the extent to which Government expenditure as a whole postponed from 1975-76 will have to be allowed for in 1976-77. With the timing of further growth in the economy uncertain and with the 1975 budget not yet debated, it is not possible to predict either at this point in time.
CONFIDENTIAL
}
從容