WEDNESDAY, MARCH 24, 1982
8
+ALTHOUGH I DOUBT WHETHER THE ADMINISTRATION BRANCH IS THE APPROPRIATE BODY TO CARRY OUT SUCH A MAJOR TASK, I WOULD, NEVERTHELESS, LIKE TO KNOW THE OUTCOME OF THEIR DELIBERATIONS, + SHE SAID.
MISS DUNN ALSO TOOK THE GOVERNMENT TO TASK FOR FAILING TO CONTAIN THE GROWTH RATE OF PUBLIC EXPENDITURE.
SHE THOUGHT THE GROWTH RATE OF PUBLIC EXPENDITURE IN RECENT YEARS WAS MOST WORRYING WHETHER ONE LOOKED AT IT IN MONEY TERMS OR REAL TERMS, IN RELATION TO THE GENERAL REVENUE ACCOUNT OR THE CONSOLIDATED ACCOUNT.
IN A CRITICAL LOOK AT THE ISSUE, SHE POINTED OUT THAT THE AVERAGE ANNUAL GROWTH RATE OF PUBLIC EXPENDITURE ON CONSOLIDATED ACCOUNT IN REAL TERMS IN THE FIVE YEARS ENDING 1981-82 WAS 16.5 PER CENT WHILE THAT OF THE GROSS DOMESTIC PRODUCT WAS ONLY 10.7 PER CENT.
ALTHOUGH THE BUDGETARY INTENTION FOR 1981-82 WAS TO HOLD THE GROWTH RATE DOWN TO 12.8 PER CENT WITH THE FORECAST GROWTH RATE OF THE GDP BEING EIGHT PER CENT, SHE SAID THE REVISED ESTIMATES OF EXPENDITURE ON CONSOLIDATED ACCOUNT REFLECT A GROWTH RATE OF NEARLY 22 PER CENT, OR MORE THAN TWICE THE NOW ESTIMATED GROWTH RATE OF THE GDP OF TEN PER CENT.
+ IN THESE CIRCUMSTANCES, I WOULD HAVE EXPECTED TO HEAR FROM THE FINANCIAL SECRETARY THAT THE CENTRAL THEME OF BUDGETARY STRATEGY IN 1982-83 WAS THE CONTROL OF PUBLIC EXPENDITURE.
+SPECIFICALLY, I WOULD HAVE EXPECTED THE FINANCIAL SECRETARY TO SLOW DOWN THE GROWTH RATE OF PUBLIC EXPENDITURE TO THE FORECAST GROWTH RATE OF THE GDP OR BELOW IT, AS WAS DONE IN 1979-80,
+ INSTEAD, A GROWTH RATE OF NEARLY 11 PER CENT IS BUDGETTED FOR COMPARED WITH A FORECAST GROWTH RATE OF THE GDP OF EIGHT PER CENT ONLY, SHE SAID.
MISS DUNN POINTED OUT THAT SHE HAD DILATED ON THESE RELATIVE GROWTH RATES AT SOME LENGTH BECAUSE THE GOVERNMENT MANAGED THE PUBLIC FINANCES ON THE BASIS OF FOUR PRINCIPLES, THE FIRST OF WHICH WAS THAT THE GROWTH RATE OF PUBLIC EXPENDITURE SHOULD HAVE REGARD TO THE GROWTH RATE OF THE ECONOMY.
+YET THERE APPEARS TO BE A DEARTH OF EVIDENCE THAT THE GOVERNMENT IS ANXIOUS TO PUT THIS PRINCIPLE INTO PRACTICE.
+ IN FACT, THE FINANCIAL SECRETARY EXPRESSED SOME DOUBT IN PARAGRAPH 28 AND FOOTNOTE 18 OF HIS SPEECH THAT HE WOULD BE ABLE TO HOLD EXPENDITURE ON GENERAL REVENUE ACCOUNT EVEN TO THE $33 BILLION SOUGHT, SHE NOTED.
BUT SHE WAS SCEPTICAL ABOUT THE FINANCIAL SECRETARY FULFILLING HIS AIM AT +KEEPING THE GROWTH RATE IN PUBLIC EXPENDITURE DOWN TO THE GROWTH RATE OF THE GDP+ ON THE GROUNDS THAT,
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