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Wednesday, February 27, 1974

F.S. SPEAKS ON BUDGET ON AIR

*

The Financial Secretary, Mr. Philip Haddon-Cave, spoke on

the 1974-75 budget in a broadcast this (Wednesday) evening.

Council.

The following is the full text of his talk:

"Good Evening:

"This afternoon I presented the 1974-75 budget to Legislative

+

"I was able to announce that in 1973-74 we would acheive the

$500 million surplus I budgeted for in last year's budget speech; and

that, despite a most turbulent year on the foreign exchange markets,

we would begin 1974-75 with available fiscal reserves of over $3,000

million after putting aside $800 million in the Mass Transit Railway Fund.

"So I was able to prepare this year's budget speech from a

position of some strength. But I had to consider the estimates of

revenue and expenditure for 1974-75 knowing that there were uncertainties

about our economic prospects over the next few months as a result of the

international oil crisis, and in the wider context of the likely cost

of our policies and programmes as they are being developed.

"Consequently, I decided that there could be no question of

my budgeting for a deficit in 1974-75. In order to bring the budget

into balance I had to do two things: first, trim the expenditure estimates

as submitted by departments down to $5,700 million, which still puts

them $900 million up on likely expenditure this year. And, secondly, I

had to put forward proposals to raise extra revenue of about $175 million

/after allowing .....

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