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18
11.2.87
STRATEGY FOR PUBLIC FINANCES
33.
Before I present my budget proposals for
1987-88, I shall describe the context in which they have
been framed. My proposals should not be looked at in
isolation. They must be related to what has happened in
the past and what is foreseen for the future. A strategy
for the medium term is essential to the stability of
Government's finances and the steady development of the
economy.
34.
I shall give details later to show the strength
of our underlying position. Briefly, however, our
expenditure remains firmly under control and is in line
with forecast. On the other hand, revenue yields have
increased substantially in response to an improvement in
economic performance. As a result, we can now expect in
the current financial year a surplus on General Revenue
Account of some $3 billion. Furthermore, although partly
due to revenue of a windfall nature, the balances in our
Capital Funds have gained by some $1.9 billion.
35.
Most of the improvement in revenue comes from
tax sources that are recurrent in nature. I am able,
therefore, to plan on the basis that they represent a
genuine gain to our revenue base, which will be sustained
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