General Revenue Account
-
Draft Estimates of Expenditure
through
71.
a
to maintain
expenditure
We have achieved our present position
cautious approach to expenditure growth. If we are
a satisfactory budgetary position,
we must contain
growth to within the planning
the planning assumption of a 5 1/2% average
annual growth rate in the economy.
I aim to hold public
expenditure a little below this figure in order to allow room
for unforeseen events, and thus my estimates for 1987-88
accommodate an overall expenditure growth rate of 4.9% in real terms. This growth rate is just under 1% more than that for
1986-87.
72.
I recognize that in setting the limits to public expenditure I must have regard to a pent up demand for services following
period of a
restraint. But I do not believe that
expenditure should be allowed to rise automatically. It remains
vital that all new expenditure proposals be judged on their
merits.
Furthermore, I consider it essential that any growth
should be related to clear and established policy objectives
rather than being brought about by a general slackening of control. We constantly improve our procedures in this area.
73.
Turning to the total
expenditure on General Revenue
Account, I have provided for a figure of $44.4 billion (23). With the need for control firmly in mind, I set guidelines for
(23)
Draft Estimates
1987-88
($mn)
Recurrent expenditure Capital expenditure
34,338
1,871
36,209
Additional commitments
1,600
Transfers to funds
6,600
44,409
21
/departments