WEDNESDAY, FEBRUARY 24, 1982
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$7.7 BILLION SURPLUS FOR 1981-82
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REVISED ESTIMATES OF REVENUE AND EXPENDITURE ON GENERAL REVENUE ACCOUNT FOR 1981-82 WILL RESULT IN A SURPLUS OF $7.7 BILLION, DERIVED FROM $34.8 BILLION IN REVENUE AND $27.1 BILLION IN EXPENDITURE, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, REPORTED TODAY.
THIS WAS JUST THREE PER CENT BELOW THE $7.9 BILLION SURPLUS BUDGETED, BUT WAS ACHIEVED DESPITE A REVISED ESTIMATE OF EXPENDITURE OF $2.5 BILLION, OR 10 PER CENT, IN EXCESS OF APPROVED ESTIMATE, HE SAID.
+WITH THE TRANSFER OF THE 1981-82 SURPLUS TO THE GENERAL REVENUE BALANCE OUR FISCAL RESERVES AT THE BEGINNING OF THE FINANCIAL YEAR 1982-83 WILL BE ABOUT $23 BILLION, MR BREMRIDGE SAID.
AFTER ALLOWING (ON THE BASIS OF A GEARING OF THREE) $6.5 BILLION AS COVER FOR FORMAL CONTINGENT LIABILITIES OF AROUND $19.5 BILLION BY MARCH 31, 1986, THE LAST YEAR OF THE NEW FORECAST PERIOD, THE +FREE+ FISCAL RESERVES WILL BE AROUND $16.5 BILLION, MR BREMRIDGE SAID.
THE REVISED INCREASE OF ESTIMATED EXPENDITURE OF $2.5 BILLION WAS MADE UP BY $1.5 BILLION ON RECURRENT ACCOUNT, DUE TO CIVIL SERVICE SALARY REVISIONS AND ADJUSTMENTS AND THEIR CONSEQUENCES FOR SALARIES OF STAFF FOR SUBVENTED ORGANISATIONS, AND BY THE NEED TO OPERATE THE DESALTER, AND $960 MILLION ON CAPITAL ACCOUNT FOR PUBLIC WORKS PROGRAMME, AND BY INCREASES IN LAND RESUMPTION AND CLEARANCE COSTS, HE SAID.
MR BREMRIDGE SAID THE REVISED ESTIMATE OF REVENUE WAS $2.2 BILL ION (OR SEVEN PER CENT) HIGHER THAN THE ORIGINAL ESTIMATE, DERIVED ENTIRELY ON RECURRENT ACCOUNT REVENUE WHICH WAS UP BY $3.8 BILLION, AGAINST A CAPITAL REVENUE DECREASE OF $1.6 BILLION.
THE INCREASE IN RECURRENT ACCOUNT WAS DERIVED MAINLY FROM EARNINGS AND PROFITS TAX, UP BY $1.9 BILLION, OR 21 PER CENT, AND FROM STAMP DUTIES, UP BY $1.1 BILLION,
MR BREMRIDGE EXPLAINED THAT THE SHORTFALL IN CAPITAL REVENUE RESULTED FROM LOWER THAN EXPECTED LAND PRICES.
+ THE ORIGINAL ESTIMATE ENVISAGED REVENUE OF $9.8 BILLION FROM THE SALE OF 79 HECTARES OF LAND. THE REVISED ESTIMATE INCLUDES $8.1 BILLION FROM THE SALE OF 86 HECTARES OF LAND.
+CRITICS WHO ALLEGE DESPITE SUCH REPEATED PROOF TO THE CONTRARY THAT THE GOVERNMENT ADOPTS A HIGH LAND PRICE POLICY WILL ANYWAY BE PLEASED TO NOTE THAT THE ACTUAL SALE OF 86 HECTARES OF LAND OWNED BY THE COMMUNITY HAS EXCEEDED THE ORIGINAL ESTIMATE OF 79 HECTARES, HE SAID.
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