Closing balance for Government

Reserves on 31.3.97

Deduct

Set-aside

Equity injections

(AA + HA + MTRC)

Expenditure on LFC

Add

12

Annex 1 (page 2)

(All

figures

at

money-of-the-day prices $ million)

in

I

53,150

25,000

30,000 (*)

14,500

(69,500)

Outstanding Government debt

5,000

Sale of LFC

15,000

New revenue measures from 1992-93 onward

13,400 (**) 33,400

Equals Cushion

17,050

Contingencies

$17,050 million as a percentage of :

(a)

Cost/scope over-runs of ACP

(estimated at $53,700 million at today's prices)

328

(b)

Reduction of GDP growth from 5% to 4.5% p.a. and its effect on revenue yields

($15,000 million)

114%

(c)

Under-achievement in sale of LFC by 50% ($7,500 million)

227%

(a)

Aggregate of (a), (b) and (c)

22.4%

(*)

This figure is made up of

Equity injections into Housing Authority Equity injections into PAA/AA

Equity injections into MTRC for the AR Expenditure on GIC facilities at CLK

$ billion

2.0

18.5

5.3

4.2

Total

(**)

This assumes the

thereafter.

$1.25 billion in 1992-93 and $0.25 billion each year The cumulative effect for the forecast period

at money-of-the-day prices is $13.4 billion.

30.0

following revenue growth in real terms :

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