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WEDNESDAY, FEBRUARY 27, 1980
$2 318M SURPLUS PREDICTED FOR 1979/80
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THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, HAS PREDICTED A RECORD SURPLÚS OF $2 318 MILLION FOR THE CURRENT FINANCIAL YEAR 1979-80.
IN HIS BUDGET SPEECH, SIR PHILIP SAID THE REVISED ESTIMATES OF REVENUE AND EXPENDITURÉ FOR 1979-80 WERE $16 550 MILLION AND $14 232 MILLION RESPECTIVELY, THUS RESULTING IN A SURPLUS OF $2 318 MILLION.
*THIS FIGURE DOES NOT QUITE MATCH UP WITH THE SURPLUS DERIVED FROM THE TREASURY'S CASH BOOK AT FEBRUARY 14, HE ADDED. +AND SO I SHALL USE A FIGURE OF $2 500 MILLION WHEN CONSIDER ING OUR CUMULATIVE FINANCIAL POSITION AT APRIL 1 NEXT.*
THE FINANCIAL SECRETARY SAID THAT FOR THE THIRD YEAR RUNNING THIS LARGER THAN BUDGETTED FOR SURPLUS $2 318 MILLION RATHER THAN $1 455 MILLION — IS DUE TO A FLUSH OF REVENUE RATHER THAN A FAILURE OF EXPENDITURE, BUT THIS OUTCOME IS ENTIRELY CONSISTENT WITH THE CONSTRAINING OBJECTIVE OF BUDGETARY POLICY IN 1979-80.+
AT $16 550 MILLION, THE REVISED ESTIMATE OF REVENUE EXCEEDS THE ORIGINAL ESTIMATE OF $13 888 MILLION BY $2 662 MILLION, OR BY 19 PER CENT.
RECURRENT REVENUE AT $13 214 MILLION IS UP BY A NET $1 738 MILLION, OR BY 15 PER CENT, ON THE ORIGINAL ESTIMATE.
CAPITAL REVENUE IS UP BY $924 MILLION, OR BY 38 PER CENT, ON THE ORIGINAL ESTIMATE AS PREMIA FROM LAND TRANSACTIONS ARE UP BY $886 MILLION, OR BY 45 PER CENT, AND THE YIELD FROM ESTATE DUTY IS UP BY $55 MILLION, OR BY 41 PER CENT,
FOR
ON EXPENDITURE, SIR PHILIP SAID THE REVISED ESTIMATE OF EXPENDITURE, AT $14 232 MILLION, EXCEEDED THE APPROVED ESTIMATE OF $12 433 MILLION BY $1 799 MILLION, OR BY 14.5 PER CENT. THE THIRD YEAR RUNNING, ACTUAL EXPENDITURE WOULD EXCEED THE APPROVED ESTIMATE, HE ADDED.
ON RECURRENT ACCOUNT, AT $9 081 MILLION, THE FINANCIAL SECRETARY SAID THERE WAS NET OVER-SPENDING OF $721 MILLION, OR NEARLY NINE PER CENT, LARGELY DUE TO THE PAY TREND SURVEY SALARY REVISION WITH EFFECT FROM APRIL 1 AND THE IMPLEMENTATION OF REPORT NO. 2 OF THE STANDING COMMISSION ON CIVIL SERVICE SALARIES AS FROM OCTOBER 1.
AS FOR CAPITAL ACCOUNT, AT $5 151 MILLION, THERE WAS NET OVER-SPENDING OF $1 078 MILLION, OR NEARLY 27 PER CENT, OF WHICH $591 MILLION IS ACCOUNTED FOR BY PUBLIC WORKS PROGRAMME OTHER THAN NEW TOWNS AND HOUSING.
IN ADDITION, SIR PHILIP SAID, AN EXTRA $382 MILLION WAS REQUIRED FOR EXTRAORDINARY ITEMS UNFORESEEN WHEN THE ESTIMATES WERE PREPARED, SUCH AS CAMPS FOR VIETNAMESE REFUGEES, THE PURCHASE OF FAIRMOUNT GARDENS AND ADDITIONAL EXPENDITURE ON SLOPES.
TURNING TO