11

19. In summary, therefore, the budget now looks

like this:

Revenue

Expenditure

Difference

Less: Repeal of various

heads of the schedule

to the Stamp Ordinance

Reduction of stamp duty

on contract notes

$mn

10,366

10,266

+ 100

130 (1)

25

Extra Post Office revenue

+

10(?)

Extra tobacco duty

+

11

Extra fuel duty

+

2

Extra F.R.T.

+ 15

Budgetted Deficit

17

Note: (1) The extra $160 million from banks in

1979-80 (+$80 million thereafter) may be regarded as a part offset for the

abolition of many stamp duties.

20.

From a monetary point of view to budget effectively for a balance in 1978-79 is, I think, right; and to be able to budget for such a large increase in expenditure without major tax changes, without incurring debt and without drawing down our fiscal reserves will be politically popular and will do much for confidence.

SECRET

F.S. 6.2.78.

/

p.s.

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