-
11
-
24.
Another key part of our strategy is that we fully
recognise the continuing importance of prudent management
of public finances. This continues
continues to be
to be based on the
target of keeping overall public expenditure growth over a
period broadly in line with the growth of GDP. The
decision to
to build a new airport has not caused this
strategy to be changed. But we must recognize that
inevitably capital expenditure will peak during the three
or four years leading up to
leading up to the actual
the actual opening of the
airport, and this would cause temporary departure from
our guidelines.
25.
Some have argued that the airport programme is
crowding out other desirable projects, and have tended to
blame all tightening of control on public sector
expenditure on the airport programme. This view is
misguided for two principal reasons. First, even without a
decision to build the new airport, lower growth in the
economy and a high level
a high level of inflation would in any event
require us to contain the increase
increase in public expenditure
more tightly.
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