(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863
NOTHING TO BE written IN THIS MARGIN
+
**
CONFIDENTIAL
3. Are the public expenditure figures in questions 1 and 2 consistent with the reference in the Despatch to a real increase in the provision of goods and services of 11% a year on average over 7 years, from HK$3,890 million in 1972/73 to HK$ 6,400 in 1976/77 and HK$8000 million in 1979/80?
Yes. Using appropriate price deflators, it is possible to
derive the following estimates :
*
Public expenditure Deflator
(HK$ million) (Index,
Expenditure at 1972/73
prices
1966=100)
(HK$ million)
72/73
3,885
157
3,885
76/77
8,224
206
6,268
77/78
9,143
206
6,968
78/79
9,844
206
7,502
79/80
10,511
206
8,011
as per questions 1 and 2.
as per GDP Estimates. Indexes for Government consumption expenditure and gross domestic fixed capital formation increase from an average of 157 in 1973 to an average of 1811⁄2 in 1974: a further increase of 242 points is assumed for 1974 to early 1976, allowing for the recession in 1974/75.
CONFIDENTIAL