Summary of draft Estimates

68.

Taken together, the draft Estimates

of revenue and

expenditure for 1988-89, before revenue measures, show a net

surplus on General Revenue Account of $5.6 billion and an

increase in the balances of the funds of $1.7 billion. In

total, therefore, a potential overall surplus for the year of

$7.3 billion is indicated (27).

69.

I have already suggested that there is scope for some

reduction in taxation. In formulating my proposals, I have looked beyond 1988-89. I must emphasise that it will take time.

before the slower economic growth that I have forecast affects

our revenue yields. Furthermore, the full impact on revenue

yields of any tax concessions I introduce will not be felt until

1989-90.

(27)

ESTIMATED SURPLUS/(DEFICIT) 1988-89

(BEFORE REVENUE MEASURES) $M

BEFORE

TRANSFERS

TRANSFERS

AFTER

TRANSFERS

General Revenue Account

Capital Works Reserve Fund] (5,700)

12,984

(7,410)

5,574

6,200

500

Development Loan Fund

Home Ownership Fund

Mass Transit Fund

(1,004)

1,100

96

1,181

1,181

(95)

100

5

Student Loan Fund

(26)

10

(16)

Total

-

Funds

(5,644)

7,410

1,766

TOTAL GENERAL REVENUE

ACCOUNT + FUNDS

7,340

7,340

/70. With

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