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89. THE FIGURES FOR RECURRENT EXPENDITURE WERE THEN ADJUSTED UPWARDS
BY THE FINANCE BRANCH FOR THE 1976 SALARIES REVISION AND CORRECT
FOR ERRORS AND OMISSIONS. THE FIGURES FOR THE TWO PUBLIC WORKS
PROGRAMME COMPONENTS OF THE CAPITAL ACCOUNT WERE RECONCILED
WITH THE PRESENT GUIDELINE FIGURES. FURTHER ADJUSTMENTS WERE MADE
TO BOTH THE RECURRENT AND CAPITAL EXPENDITURE FIGURES TO TAKE
ACCOUNT OF COMMITMENTS ARISING FROM POLICY INTENTIONS WHICH
SUBSEQUENTLY BECAME KNOWN TO THE FINANCE BRANCH.
(C) RESULTS
90. THIS IS NOT THE TIME OR PLACE TO DESCRIBE THE RESULTS OF THIS
EXERCISE IN DETAIL, VITAL THOUGH IT IS TO SOUND MANAGEMENT OF THE
PUBLIC FINANCES AND, IN PARTICULAR, TO THE CONSTRUCTION OF THE
BUDGET FOR THE IMMEDIATELY ENSUING YEAR, SUFFICE IT TO SAY THAT
THE EXERCISE THREW UP AN OVERALL DEFICIT OF DOLLARS 380 MILLION
IN 1977-78 AND FURTHER DEFICITS OF DOLLARS 650 MILLION AND DOLLARS
200 MILLION IN THE FIRST TWO YEARS OF THE FORECAST PERIOD.
BY 1980-81 THERE IS A SURPLUS OF DOLLARS 280 MILLION, REFLECTING
A TAILING OFF IN DEPARTMENTAL EXPECTATIONS AND CONSEQUENTLY THE
PROPORTION OF RECURRENT REVENUE ABSORBED BY RECURRENT EXPENDITURE
IN THAT YEAR IS. ACCORDING TO THE FORECAST FIGURES, ONLY 75% THUS,
IN THE ABSENCE OF SERIOUS ECONOMIC SETBACKS, THERE SHOULD BE SOME
ROOM FOR FEEDING ESSENTIALLY NEW SERVICES AND WORKS (1.E. SERVICES AND WORKS NOT YET DEFINED OR APPROVED) INTO THE DRAFT ESTIMATES OF
THE LAST YEAR OR TWO OF THE FORECAST PERIOD.
4) ESSENTIAL ELEMENTS OF BUDGETARY POLICY
(A) PRESENT GUIDELINES
91. I BELIEVE THE OBJECTIVES OF BUDGETARY POLICY IN HONG KONG TO
BE:-
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