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11.2.87
85.
The growth in expenditure is partly accounted
for by the further equity injection of $1 billion into the
MTRC,
which the Government is committed to make in
1987-88. It also reflects provision for higher capital
expenditure.
As I mentioned earlier, capital spending has
fallen substantially in recent years. There is now some
scope for tackling the list of outstanding projects.
Whilst I have had regard to the recurrent consequences of
projects once completed, I propose to allocate $6 billion
for new projects starting in 1987-88, which is
$1.2 billion more than for the current year.
86.
Allowing for inevitable lead times, it will
take a while for this boost in capital spending to be
reflected in cash flows. For 1987-88 there is room for
more immediate expenditure, which will have a positive
impact on Government's longer term position both
financially and in terms of efficiency. I have in mind
some rationalization of Government's accommodation, and a
variety of measures involving, for example,
computerisation and equipment renewal.
87.
Revenue accruing directly to the funds
comprises receipts from a combination of land sales, loan
repayments, interest payments and sales of flats under the
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