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Wednesday, February 24, 1971

EXPENDITURE ESTIMATE FOR NEXT FINANCIAL YEAR

$2,936 Million, Or 18.7 Fer Cont Higher Than This Year

The total estimate of expenditure in the next financial year

beginning on April 1 is $2,936 million $463 million, or 18.7 per cent,

higher than the revised estimate for 1970/71.

Sir John Cowperthwaite, Financial Secretary, told the Legislative

Council today this was "an unusually large increase," particularly coming on

top of an increase of about $400 million in actual expenditure this year

compared with the last.

He said the increase reflected factors such as rising costs, both

of staff and of material things

samo economic developments that had caused "even sharper growth of revenue

in the recent past."

rising costs boing a consequence of the

Another, and probably more important, factor was the "maturing of

plans long in the pipeline,"

Ho had for years tried to explain that the Government's plans must

not be judged by one year's estimates of expendituro, but by the in the

short torm "largely irreversible plans of expansion in nearly all fields

of government activity."

P

/He

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