3 高度機密
Public Sector
43.
deficit.
Sir, I have frequently emphasised the need for a calm, steady but above all planned approach towards reducing the This strategy continues with today's budget proposals. There can be growing confidence that the desired results are materialising. Close monitoring of our performance with the help of a financial model coupled with the latest
information available indicates that we remain on course. It
should thus be possible further to reduce the deficit this coming year before seeking a balanced budget in 1986-87.
44.
This recovery is being achieved despite the dramatic fall in land revenue with which we are now learning to live (11). What has largely made this possible has been firm restraint on growth of public sector expenditure. We have again in 1984-85 successfully held its growth rate well below the rate of growth in GDP. This creates the necessary breathing space whilst we await the working through of economic growth to our
recurrent revenue.
45.
The budget presented today proposes total public sector expenditure on Consolidated Account of $45.6 billion. The downward movement in the relative size of the public sector (12) will be from 19.1% in 1982-83 to 18.6% in 1983-84 to my revised
estimate of 16.4% for 1984-85 and to an estimated 16% in
1985-86. This is a considerable fall on a GDP of $286 billion. It is far better than I indicated in the last budget speech (13).
(11) 1984 B.S., paragraph 75.
(12) defined as the ratio of Consolidated Account expenditure to the GDP at
current prices.
(13) 1984 B.S., paragraph 26. See also Table (1) in the statistical tables.
G.F. 316
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高度機密