GR 2503
FRIORITY
CYPHER/CAT A
FM HONG KONG 240815Z
SECRET
SECRET
TO PRIORITY F C O TEL NO 193 OF 24 FEBRUARY.
M.I.P.T.
FOR LORD GORONWY ROBERTS PERSONAL FROM GOVERNOR.
REAC
REMI
25 FEB 1977
14KK 100/2
нак
(2) ASSESSMENT OF PERFORMANCE, 1973-74 TO 1976-77
(A) TOTAL EXPENDITURE
131
M
81. AFTER INCREASING SHARPLY FROM COLLARS 4,644 MILLION IN 1973-74
TO DOLLARS 5,973 MILLION IN 1974-75, CR BY 29%, INVOLVING THE LARGEST OVERALL DEFICIT IN POST-WAR YEARS OF DOLLARS 380 MILLION, TOTAL EXPENDITURE IN 1975-76 INCREASED BY A MERE 1% TO DOLLARS 6,032 MILLION. THUS THE BUDGET CORRECTLY REFLECTED THE SLOWING DOWN OF THE GROWTH RATE OF THE ECONOMY, ALTHOUGH IT WAS POSSIBLE TO MAINTAIN CONSIDERABLE MOMENTUM IN OUR SOCIAL PROGRAMMES.
82. AS THE DIFFICULTIES OF THE PREVIOUS TWO YEARS WERE CLEARLY BEGINNING TO RECEDE, THE 1976-77 BUDGET PROVIDED FOR TOTAL EXPENDITURE OF DOLLARS 7,212 MILLION, THE OBJECTIVE BEING A RESUM -- PTION OF GROWTH AFTER THE PAUSE IN 1975-76.
IN 1976-77 I PROVIDED FOR RECURRENT EXPENDITURE OF DOLLARS 5,289 MILLION, AN INCREASE OF 15%, AND FOR CAPITAL EXPENDITURE OF DOLLARS
1,923 MILLION, AN INCREASE OF 18%.
IN THE EVENT, WHEREAS RECURRENT EXPENDITURE IN 1976-77 AT DOLLARS 5,401 MILLION IS LIKELY TO BE SOME 212 UP ON ACTUAL EXPENDITURE IN 1975-76. CAPITAL EXPENDITURE AT DOLLARS 1,442 MILLION IS LIKELY
TO BE 90 LESO.
SECHET
(B) RECURRENT
(13