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I NEED ONLY REFER TO THE GUIDELINE RELATING PUBLIC SECTOR

EXPENDITURE, DEFINED TO INCLUDE ALL EXPENDITURE FINANCED FROM PUBLIC FUNDS (235), TO THE G.D.P.

THE RATIO OF PUBLIC EXPENDITURE SO DEFINED TO THE PRELIMINARY ESTIMATE OF G.D.P. THIS YEAR, 1976-77, WILL BE 16.4% THIS RATIO

WILL RISE TO 17.6% NEXT YEAR AND THIS IS CONSISTENT WITH THE SLOWER GROWTH RATE FORECAST FOR THE ECONOMY AND OUR POLICY OF LIFTING PUBLIC EXPENDITURE TO A RATHER HIGHER PLATEAU.

MACLEHOSE

E

FILES:

HEAD HKD

FS/LORD GORONWY ROBERTS

MR CORTAZZI

MR MURRAY

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