11.2.87
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34
67.
Taking the General Revenue Account surplus
together with this increase in fund balances gives an
overall surplus for the year of $4.9 billion.
68.
In the light of the improvements in 1986-87 I
xpect our general reserves to stand at around
Zu Dillion at the end of this year plus balances of a
further $12 billion carried in our various funds. We have
a number of contingent liabilities and these must be
allowed for (21). There is no absolute rule as to the
correct level of reserves. It should be recognized,
however, that although our reserves are increasing again,
they remain in real terms slightly below their level at
the start of this decade before we fell into deficit.
the average annual surplus of $1.5 billion that we have
projected over the forecast period is no more than
sufficient to maintain the real value of our reserves.
And
(21)
Listed in Appendix F.
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