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Wednesday, February 24, 1971
$2,902 MILLION IN RECURRENT REVENUE ESTIMATED FOR NEXT FINANCIAL YEAR
Not "Pessimistic" Forecast, Says Sir John
Sir John Cowperthwaite, Financial Secretary, told the Legislative
Council today the total estimate for recurrent revenue in the next financial
year was $2,902 million, or an increase of 8.7 per cent over the revised
estimate for 1970/71.
"I do not think that this can be said to be a pessimistic forecast.
Possibly the reverse might be alleged," he commented.
Earlier in his budget speech he referred to "a certain amount of
pessimistic talk this year about our economic future," though more recent
news of agreement reached with the European Economic Community on the
Generalised Preference Scheme had helped to counteract it.
Even those who were prepared to confess a maintenance of, or even
an increase in, the level of business activity had been "speaking anxiously
of rising costs and squeezed profit margins."
"I am not wholly convinced by such talk," Sir John said, "and our
estimates of recurrent revenue next year are based on the premise of a continued
high level of growth, although at a rate rather less than in the last two
years; and of course, for the Salaries and Profits Tax, it is 1970/71 experience
that is reflected in 1971/72 tax yields."
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