WEDNESDAY, JUNE 2, 1962
15
+THE
+1 CAN FIND NO EVIDENCE OF THIS, MR CHING SAID. FINANCIAL SECRETARY SAID THAT HE WAS OPPOSED AS A GENERAL RULE TO THE CONCEPT OF TAXATION FOR NON-FISCAL ENDS'.
+THE FACT THAT HE WAS PERSUADED THAT FISCAL MEASURES WERE NECESSARY, DESIGNED TO ACT AS RESTRAINTS DIRECTED AT VEHICLE OWNERSHIP AND USAGE, DID NOT INVOLVE THE ABANDONMENT OF ANY PRINCIPLE.
+ INDEED, THE POSSIBLE NEED, IN EXCEPTIONAL CIRCUMSTANCES, TO ACHIEVE POLICY OBJECTIVES VIA FISCAL MEASURES HAS FOR LONG BEEN RECOGNISED, AND HAS BEEN REFERRED TO IN A SUCCESSION OF BUDGET SPEECHES SINCE AT LEAST 1973.
+THE PROPOSALS NOW UNDER CONSIDERATION ARE NOT THE FIRST TIME THAT FISCAL MEASURES HAVE BEEN USED TO ACHIEVE CERTAIN NON-FISCAL OBJECTIVES- THERE ARE MANY OTHER EXAMPLES.+
THE ACTING FINANCIAL SECRETARY THEN SET OUT TO REMOVE SOME MISCONCEPTIONS AS REGARDS THE BUDGETARY IMPLICATIONS OF THESE PROPOSALS.
HE SAID THE BUDGET FOR THE CURRENT YEAR ENVISAGED A SURPLUS OF OVER $5 000 MILLION, TAKING THE GENERAL REVENUE ACCOUNT WITH THE CAPITAL WORKS RESERVE FUND.
+ AND THIS IS THE BUDGETED FOR SURPLUS AFTER A NUMBER OF TAX CONCESSIONS AMOUNTING TO NEARLY $1 400 MILLION, HE ADDED.
+ IT IS TOO EARLY IN THE YEAR TO SAY WHAT THE ACTUAL OUTTURN IS LIKELY TO BE. IT IS POSSIBLE THAT THE ACTUAL SURPLUS MAY BE SOMEWHAT LESS, HAVING REGARD TO INCREASED EXPENDITURE NOT BUDGETED FOR, BUT SUBSEQUENTLY APPROVED BY THE FINANCE COMMITTEE OF THIS COUNCIL, AND HAVING REGARD TO POSSIBLE LOWER YIELDS IN CERTAIN REVENUE ITEMS, IN PARTICULAR LAND SALES.
+BUT WHATEVER THE EVENTUAL OUTCOME, THERE IS NO REASON TO THINK THAT A SURPLUS WILL NOT BE ACHIEVĒD. IN OTHER WORDS, THERE IS NO NEED TO RAISE TAXES FOR FISCAL PURPOSES IN THE CURRENT YEAR.+
MR CHING SAID ANY CONSTRAINT ON PUBLIC SECTOR EXPENDITURE IN THE CURRENT YEAR, AS THE FINANCIAL SECRETARY HAD EXPLAINED IN DETAIL IN HIS BUDGET SPEECH, WAS NOT THE RESULT OF A LACK OF FUNDS.
+WE HAVE BUDGETED FOR A SURPLUS, AND WE HAVE A VERY HEALTHY LEVEL OF FREE FISCAL RESERVES.
+OUR CONCERN, SHARED BY A NUMBER OF UNOFFICIAL MEMBERS OF THIS COUNCIL, HAS BEEN WITH THE RELATIVE SIZE OF THE PUBLIC SECTOR, AND WITH THE GROWTH RATE OF PUBLIC SECTOR WHICH, FOR 1982-83, IS STILL HIGHER THAN THE FORECAST GROWTH RATE OF G.D.P.+
MR CHING STRESSED THAT THE ADDITIONAL REVENUE WHICH MIGHT ARISE FROM THESE PROPOSALS WOULD BE +AN UNEXPECTED WINDFALL WHICH WILL BE TREATED WITH OUR USUAL PRUDENCE.+
/+THERE CAN