}
THURSDAY, MARCH 24, 1983
+ BELIEVE. THEREFORE, THAT THE TIME HAS COME TO REVIEW THE BASIC CONCEPT OF SUBVENTION, THE RULES GOVERNING THE ADMINISTRATION OF SUBVENTIONS, AND THE ADEQUACY OR OTHERWISE OF THE MEANS NOW AVAILABLE TO CONTROLLING OFFICERS TO ENSURE THAT SUBVENTED AGENCIES SUBJECT THEMSELVES TO A SIMILAR DEGREE OF FINANCIAL DISCIPLINE,+ MR CHEONG SAID.
TURNING TO THE GROWTH RATE OF OVERALL EXPENDITURE, MR CHEONG NOTED THAT THE ALLOWANCE OF 10 PER CENT IN MONEY TERMS FOR 1983-84 IMPLIED CONSIDERABLE SLOWDOWN OVER PREVIOUS YEARS' FIGURES.
BUT, HE ADDED, AN EXAMINATION OF THE FINANCIAL SECRETARY'S BUDGET SPEECH SUGGESTS THAT THE DEGREE OF BELT TIGHTENING INVOLVED IS PERHAPS NOT AS ADEQUATE AS PRESENT AND FORESEEABLE CIRCUMSTANCES JUSTIFY,+
HE NOTED THAT ON RECURRENT ACCOUNT, A GROWTH RATE OF 14 PER CENT IN MONEY TERMS ON THE 1982-83 REVISED ESTIMATES IS ARGUABLY STILL TOO HIGH.
WHILE RECOGNISING THE DIFFICULTIES INVOLVED IN TRYING TO SLOW DOWN THE GROWTH RATE OF EXPENDITURE, MR CHEONG SAID A 14 PER CENT GROWTH RATE IS CLEARLY NOT AS EFFECTIVE AS THE SMALL GROWTH RATE OF 4.4 PER CENT FOR CAPITAL ACCOUNT EXPENDITURE.
+
+AFTER ALL. HE ADDED, IT IS RECURRENT AND NOT CAPITAL ACCOUNT EXPENDITURE THAT REPRESENTS ON-GOING COMMITMENTS,+ HE SAID. THE FACT THAT IT IS CAPITAL, OR NON-SALARY RELATED, EXPENDITURE THAT HAS BEEN SALVAGED RAISES THE IMPORTANT QUESTION OF THE NEED FOR MORE EFFECTIVE CONTROL OF RECURRENT EXPENDITURE,
EARLIER, MR CHEONG COMMENDED THE FINANCIAL SECRETARY FOR HIS OVERALL BUDGETARY APPROACH WHICH, HE SAID, IS ADMIRABLY SUITED TO HONG KONG'S PRESENT AND IMMEDIATELY FORESEEABLE CIRCUMSTANCES+.
IT IS SUITED TO HONG KONG'S PRESENT CIRCUMSTANCES BECAUSE IT HAS TO FACE THE FACT THAT LOOMING DEFICIT HAS TO BE FINANCED, HE SAID.
+THERE MAY WELL HAVE BEEN EQUALLY FORCEFUL ARGUMENTS FOR OR AGAINST EITHER METHODS OF RAISING REVENUE THAT IS, THROUGH INCREASES IN DIRECT OR INDIRECT TAXATION - BUT ON MACRO ECONOMIC GROUNDS ESPECIALLY IN THE CONTEXT OF OUR EXTERNALLY ORIENTED ECONOMY AND THE FACT THAT WE ARE STILL IN A WORLD RECESSIONARY ATMOSPHERE THE CHOICE OF RAISING INDIRECT TAXATION WOULD DEFINITELY HAVE LESS DAMAGING EFFECTS ON OUR ABILITY TO RECOVER.+
THE BUDGETARY APPROACH IS ALSO SUITED TO OUR IMMEDIATELY FORESEEABLE CIRCUMSTANCES +BECAUSE, GIVEN THE CURRENT INSTABILITY OF THE WORLD FINANCIAL SYSTEM PRECIPITATED BY HUGE TROUBLE THIRD WORLD LOANS, THE FINANCIAL SECRETARY HAS PRUDENTLY PLANNED AHEAD TO POSITION OURSELVES FAVOURABLY IF AND WHEN WE HAVE TO RESORT TO BORROWINGS IN FUTURE+.
+CAN ANYONE OF US IN HONG KONG SERIOUSLY DISPUTE THESE WORDS OF PRAGMATIC WISDOM WHEN HE SAID, 'IT IS ONE THING TO BORROW WHEN YOU STILL HAVE MONEY IN THE BANK AND IT IS ANOTHER WHEN YOU DO NOT'?+ HE ASKED.
HE