14-OCT-1992 11:48

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P.26

Paper 6 (P.2 of 13)

Moreover,

when

unexpected

known, there

surpluses become

immediate pressure for making

use of these surplus! funds.

and

up

The choice then 15 between arousing suspicion opposition in the legislature for building "unnecessary" levels of reserves and giving way to the pressure, irrespective of the implications for future years and of the prudent budgetary guidelines which have served us so well in the pasti

3. Extent

underspending - on PWR and land

of

acquisition

Table A shows that actual expenditure in respect of PWP and land acquisition differed from the original estimates By 25% in 1990-91 and 37% in

1991-92 and from the revised estimates by 18% in

1990-91 and 16% in 1991-92.

actual expenditure

The latest 1992-93 outturn

turn forecast shows a

reduction of $3.4 billion from $19.7 billion to

$16.3 billion för

for PWP expenditure and $1.2

billion from $5.2 Billion to $410 billion for

land acquisition. Even these outturn forecasts

could be unrealistic

incurred for the year to end of August 1992

represented only * 218 of the original estimate

for the PWP and 11% for land acquisition and

based on the actual spending pattern over the last 5 years as shown in Table B, it is doubtful whether the substantially higher level of

expenditure still being forecast can actually be

achieved.

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