WEDNESDAY, FEBRUARY 24, 1982
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+THIS IS STILL ARGUABLY ON THE HIGH SIDE THOUGH IT DOES INCLUDE CONSIDERABLE CONTINGENCIES, BUT CERTAINLY IT IS TRENDING THE RIGHT WAY IF INDEED IT IS ACCOMPLISHED.+
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HE HOPED THAT MEMBERS OF THE LEGISLATIVE COUNCIL WOULD ACCEPT THE OVERALL NEED FOR FIRM THOUGH SENSITIVE RESTRAINT OF THE GROWTH OF PUBLIC EXPENDITURE, BEARING IN MIND THAT RESTRAINT DID NOT MEAN PETTY-MINDED MEANNESS. NOR WAS HE SEEKING REDUCTIONS EXCEPT WHERE THERE WAS CLEAR WASTE OR PROGRAMMES CHANGE OR END.
+1 CANNOT ACCEPT INCREASED OVERALL EXPENDITURE, FOR ! MUST EMPHASISE MY BELIEF THAT A THRIFTY USE OF RESOURCES AND A CORRECT ALLOCATION OF PRIORITIES REPRESENT THE PRUDENT APPROACH. THROWING MONEY AT PROBLEMS SOLVES NOTHING IN THE LONG RUN,
MERELY SAID.
HE
MR BREMRIDGE NOTED THAT THE GROWTH RATE FOR PUBLIC SECTOR EXPENDITURE FOR 1981-82 WAS 21.8 PER CENT IN REAL TERMS AND THIS WAS QUITE DIFFERENT FROM LAST YEAR'S BUDGET FORECAST FOR AN EASING BACK IN THE INCREASE IN EXPENDITURE IN REAL TERMS ON CONSOLIDATED ACCOUNT FROM 21.4 PER CENT IN 1980-81 TO 12.8 PER CENT IN THE CURRENT FINANCIAL YEAR.
HE EXPLAINED THAT THIS WAS DUE TO THE FACT THAT EXPENDITURE HAD BEEN BOOSTED BY THE NEED TO OPERATE THE DESALTER AND THE INCREASED COSTS OF LAND ACQUISITION. NEITHER COULD BE ANTICIPATED, AND NEITHER COULD BE OFFSET AGAINST OTHER SAVINGS.
NEVERTHELESS, HE SAID, IT WAS CLEAR THAT IN ANY GROWING ECONOMY IT WAS APPROPRIATE THAT PUBLIC EXPENDITURE SHOULD INCREASE, FOR ECONOMIC GROWTH INEVITABLY ENCOURAGED AND REQUIRED SOME GROWTH OF THE PUBLIC SECTOR.
HE STRONGLY BELIEVED THAT IN HONG KONG, FOR THE FUTURE, FIRSTLY WE SHOULD TRY TO KEEP THIS GROWTH RATE IN PUBLIC EXPENDITURE DOWN TO THE GROWTH RATE OF THE GDP, AND SECONDLY, EVEN IF THIS WAS NOT FEASIBLE OR APPROPRIATE EVERY YEAR THAT THE TREND SHOULD BE CLEARLY THIS WAY INCLINED.
+A TREND OF UNRESTRAINED GROWTH IN THE RELATIVE SIZE OF THE PUBLIC SECTOR WOULD BE DEPLORABLE, FOR IT WOULD INEVITABLY AFFECT OUR EXCHANGE RATE, INFLATION AND BASIC CREDIBILITY IN HONG KONG,+ MR BREMRIDGE SAID.
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