WEDNESDAY, FEBRUARY 29, 1984
ON THE BASIS OF THE OLD GDP ESTIMATES, CONSOLIDATED EXPENDITURE IN 1982-83 REPRESENTED 22.4 PER CENT OF GDP, AND IN 1983-84, IT WOULD HAVE REPRESENTED 22 PER CENT, SIR JOHN SAID.
ON THE BASIS OF THE NEW GDP FIGURES, THE COMPARISON WOULD BE 19.4 PER CENT IN 1983-84 AND ONLY 18.3 PER CENT IN 1984-85, HE ADDED.
+THIS CONTINUING FALL, THE FIRST FOR SEVERAL YEARS, ILLUSTRATES MY PROMISES TO KEEP PUBLIC SECTOR EXPENDITURE UNDER TIGHT CONTROL,
THE TASK WHILE STILL PROCEEDING STEADILY WITH MAJOR PROGRAMMES. IS NOT EASY,+ SIR JOHN SAID.
EXPLAINING HIS EXPENDITURE PROPOSALS IN BROAD TERMS, HE SAID THAT THE PROPOSED GROWTH IN GENERAL REVENUE ACCOUNT EXPENDITURE, EXCLUDING TRANSFERS TO FUNDS, BUT INCLUDING A PROVISION OF
$2 BILLION FOR ADDITIONAL COMMITMENTS, WOULD BE ABOUT 15.5 PER CENT IN MONEY TERMS.
THE LOWER GROWTH OF 9.5 PER CENT IN EXPENDITURE REFLECTED THE FACT THAT TOTAL CAPITAL EXPENDITURE IN 1984-85 IS EXPECTED TO BE SLIGHTLY LESS THAN IN 1983-84, HE POINTED OUT.
+I MUST STRESS, HOWEVER, THAT THIS REDUCTION DOES NOT REFLECT ANY CUT BACK IN THE PROGRAMME OF CAPITAL WORKS, AS I WILL DEMONSTRATE LATER, + SIR JOHN SAID.
HE ATTRIBUTED THE APPARENT SLOWDOWN IN CAPITAL EXPENDITURE IN 1984-85 TO TWO MAIN REASONS.
THE FIRST WAS AN INEVITABLE FLATTENING OUT OF ANNUAL EXPENDITURE FROM THE CAPITAL WORKS RESERVE FUND AS A NUMBER OF LARGE PROJECTS APPROACH COMPLETION.
SIR JOHN MENTIONED IN PARTICULAR THE MODERNISATION OF THE KOWLOON-CANTON RAILWAY WHICH IS NEARING THE END, WITH
THE KCR'S CAPITAL EXPENDITURE HAVING NOW FALLEN FROM $650 MILLION IN 1982-83 TO $340 MILLION IN 1983-84.
THE SECOND REASON WAS THE NEED TO MAKE AN UNEXPECTED PAYMENT IN 1983-84 OF $388 MILLION FROM THE HOME OWNERSHIP FUND FOR THE MELODY GARDEN PROJECT. THE SUM REPRESENTING THE DIFFERENCE BETWEEN THE GUARANTEED SALE PRICE TO THE DEVELOPER AND THE ACTUAL SALES REVENUE RECEIVED.
ESTIMATED EXPENDITURE FROM ALL THE FUNDS AND ASIAN DEVELOPMENT BANK LOANS IN 1984-85 IS EXPECTED TO BE $11.5 BILLION, SIR JOHN SAID.
THIS FIGURE COMPARES WITH A REVISED ESTIMATE OF ALMOST $11.9 BILLION IN 1983-84, A DECREASE OF $376 MILLION OR 3.2 PER CENT.
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