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CONFIDENTIAL

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(a) Recent

Branch

newspaper articles claimed that Finance

was asking Departments to speed up

their capital spending during the current

financial year.

(b) The CPG would

increases

of

be alarmed by any unnecessary

this sort in government

expenditure.

Controlling Social Spending

4.

on the

The NCNA officials accepted that increased spending

social services would benefit the community.

they insisted that any additional expenditure in

this area should comply with four conditions:

However,

(a) The extra spending

should not lead to budget

deficits.

(b) Increased

spending

should be devoted to

programmes based on past policy reviews and

which

represented

widely-accepted

recommendations (e.g.,

those contained in the

Education

Commission's

fourth and fifth

reports).

CONFIDENTIAL

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