5
Wednesday, March 29, 1972
"We need to consider our reserves in terms of the unspent balance
in Category A of the Public Works Programme, that is, projects to which we
are already fully committed."
At this moment that balance was $3,548 million compared with
$1,736 million about a year ago and $1,631 million in February 1970, he said.
"Thirdly, and this is surely significant, the years in which our
reserves have increased substantially have been years in which expenditure has
likewise increased."
At the beginning of 1970-71 the reserves amounted to $1,726 million
and although expenditure had increased by 21 per cent, the reserves at the
beginning of 1971-72 amounted to $2,475 million, duo mainly to a budget
surplus of $618 million.
Budget Surplus
In 1971-72 expenditure had increased by about 20 per cent and yet
the reserves at the beginning of 1972-73 would be about $3,900 million, due
partly to a budget surplus of about $700 million, he said.
"I would suggest that the conclusion to be drawn from these figures
is that our surpluses in recent years have been due to the strength of the
economy's growth movement, not to under-sponding or to under-provision for
spending," the Financial Secretary said.
One important fact he had to mention was that while the reserves
had increased from $1,173 million at April 1, 1968 to $3,923 million four
years later or by $2,750 million, only $1,975 million could be accounted for
by surpluses on the General Revenue Account, he said.
"The remaining