38.

There are potentially serious implications if such a

high growth rate of 4% in the size of the Civil Service were to

continue. I have in mind the relationship between the size of

the civil service and that of the labour force as a whole. The

total labour force, which expanded by an average of 3.8% in the

1970's and 2.4% in the first part of this decade, is expected to

grow by only 1.4% for the remainder of this decade. Also, this

rapid growth in the size of the Civil Service occurs at a time

when the unemployment rate is particularly low. It may be

unavoidable in the short

in the short term, but it cannot be permitted to

continue indefinitely.

39.

In a period of sustained expenditure growth,

attention to priorities and to the effective deployment of

resources is particularly important. It is therefore essential that our systems for appraising resource allocation be further

refined. We aim to ensure that decisions are made in the

context of planning for several years ahead. The Medium Range

Forecast as an instrument to be utilised in the determination of

appropriate fiscal policies was one of the early developments in furtherance of this objective.

From this beginning, Our

developed to focus

financial planning machinery is being attention on relative priorities between programmes. There is

now an increasing emphasis in the budget documents on what is being done with money and what is being achieved.

/40. In

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