Appendix A-Contd.
20 After a period of high staff growth in the late 1970's and early 1980's, the rate of growth has stabilized from about 1983-84 onwards. However, the target rate (no more than 24%) will be exceeded in 1988-89 and in the next three years or so as a number of major medical facilities come on stream and as the Royal Hong Kong Police Force is expanded to take on new responsibilities.
Consolidated Account Expenditure in the Context of the Economy
21 Up to this point, the forecasts have dealt with Government's own expenditure. For monitoring purposes, this is consolidated with the expenditure of other public bodies such as the Urban Council in order to compare total Consolidated Account expenditure to the size of the economy.
22 The results of this comparison are set out in Table 4 and the historic and projected relationship between GDP and Consolidated Account expenditure is illustrated in Diagram 6.
Consolidated Account Expenditure in the Context of the Economy (Note 1)
Table 4
Revised Estimate
Forecast
1987-88
1988-89
1989-90
1990-91
1991-92
Smn
Smn
Smn
$mn
Smn
Operating expenditure
37,080
42,270
47,220
53,380
60,170
Capital expenditure
12,080
13,270
17,880
16,210
15,860
Total Government expenditure
49,160
55,540
65,100
69,590
76,030
Add: Other public sector bodies
6,320
7,050
8,150
9,350
10,680
Less: Debt repayments
(400)
(1,000)
MTRC equity injections
(1,000)
(1,500)
(1,000)
Total Consolidated Account expenditure
54,080
62,590
70,750
77,940
86,710
Gross Domestic Product (calendar year) (Note 2)
360,200
400,900
446,200
496,600
552,700
Growtrin GDP
Money terms
20.1%
11.3%
11.3%
11.3%
11.3%
Real terms
13.6%
5.5%
5.5%
5.5%
5.5%
Growth in Consolidated Account expenditure
Money terms
12.8%
15.7%
13.0%
10.2%
11.3%
Real terms
4.6%
7.0%
6.5%
3.4%
4.4%
Consolidated Account expenditure as a percentage of GDP
(at current prices) (Note 3)
15.0%
15.6%
15.9%
15.7%
15.7%
Note The Consolidated Account comprises expenditure by the Urban Council, the Housing Authority and the Regional Council, expenditure financed by the Government's statutory funds and all expenditure charged to the General Revenue Account. Expenditure by institutions in the private or quasi-private sector is included to the extent of their subventions. The activities of government departments which are partly financed by charges raised on a commercial basis are also included (e.g. airport, waterworks). But not included is expenditure by those organizations, including even statutory organizations, in which the Government has only an equity position, such as the Mass Transit Railway Corporation and, post 1982–83, the Kowloon-Canton Railway Corporation. Similarly, debt repayments and equity payments are excluded as they do not reflect the actual consumption of resources by the Government. Note 2 For years beyond the current year, the GDP figures are based on trend assumptions. The projection for 1988 is, therefore, slightly
different from the specific forecast for that year published in the ‘1988 Economic Prospects'.
Note 3 Caution should be exercised in interpreting these percentages as the Consolidated Account expenditure is estimated on a fiscal year
basis while the GDP is estimated on a calendar year basis.
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