Option (a) $m

Option (b) $m

829

816

of services

carried out

for the

Government

13

13

Subvented

organisations

deficiency grants

463

456

discretionary

grants

13

13

21

Auxiliaries and special allowances

7

1,325

7

1,305

pay adjustment of this order can be accommodated under the provisions of the 1987/88 Draft Estimates.

Economic implications

22

As the additional expenditure of up to $1,325 million referred to in paragraph 20 above represents about 0.4% of gross domestic product, the macro-economic implications are unlikely to be significant. A civil service pay adjustment in line with those carried out in the private sector is unlikely to generate significant inflationary pressures additional to those caused by pay adjustments in private companies.

Public reaction

23

The media reported on the outcome of the pay level survey and the criticisms made of it by civil service staff associations. The media also reported on the findings of the pay trend survey and so far their reaction has been neutral.

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