4.2.87
ESTIMATES 1987-88
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70.
Against this background, I now present the
draft estimates of expenditure, the revenue estimates and
my revenue proposals for 1987-88.
General Revenue Account Draft Estimates of Expenditure
71.
We have achieved our present position through
a cautious approach to expenditure growth. If we are to
maintain a satisfactory budgetary position, we must
contain expenditure growth to within 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 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 a period of restraint. But I do
not believe that expenditure should be allowed to rise
automatically.
It remains vital that all new expenditure
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