WEDNESDAY, APRIL 17, 1985
+AS THE GOVERNMENT'S MOVES TO THIS END SINCE THE COLLAPSE OF THE LAND BOOM HAVE SO FAR BEEN SUCCESSFUL, I DID EXPECT ENCOURAGEMENT THIS YEAR. I GOT IT, BUT WITH MORE GROUSING, + HE
SAID.
NEVERTHELESS, HE SAID, THE GOVERNMENT WOULD SEEMINGLY HAVE RESTRAINED PUBLIC SECTOR EXPENDITURE BY OF THE ORDER OF $8.5 BILLION THIS YEAR IN THE PAINFUL COURSE OF THE MAJOR RESTRUCTURE WHICH HAD TAKEN PLACE OVER THE LAST THREE YEARS AND WHICH HE HOPED MIGHT WITH GOOD FORTUNE BE CONCLUDED NEXT YEAR IN THE SHAPE OF A BALANCED BUDGET.
+ THE DOWNWARD MOVEMENT OF THE RELATIVE SIZE OF THE PUBLIC
IN SECTOR IS FROM 19.1 PER CENT IN 1982-83 TO 18.6 IN 1983-84. 1984-85 IT WILL BE A REVISED 16.2 PER CENT AND I STICK TO MY ESTIMATE OF 16 PER CENT FOR THIS FINANCIAL YEAR, HE SAID.
GOVERNMENT ACCOUNTING SYSTEM EXPLAINED
****
THE HONG KONG GOVERNMENT'S SYSTEM OF +CASH+
THAT IS TO
SAY. +RECEIPTS AND PAYMENTS+-- ACCOUNTING WAS THE SAME AS THAT OF MOST, IF NOT ALL, OTHER GOVERNMENTS, THE FINANCIAL SECRETARY, THE HON SIR JOHN BRÉMRIDGE POINTED OUT TODAY.
HE WAS REFLYING TO QUESTIONS ABOUT THE ACCOUNTING SYSTEM OF VARIOUS ITEMS, WHICH HE SAID APPARENTLY STEMMED FROM A MISUNDERSTANDING OF THE PURPOSE OF THE GOVERNMENT ACCOUNTING
SYSTEM.
THE SYSTEM REQUIRED THAT ALL PAYMENTS BE MADE IN ACCORDANCE WITH THE PROVISIONS OF THE PUBLIC FINANCE ORDINANCE, WHICH HAD BEEN UNANIMOUSLY CONSENTED TO BY THIS COUNCIL AND BROUGHT INTO FORCE ON APRIL 1, 1983, HE SAID.
+ IT IS A SYSTEM OF ACCOUNTING DESIGNED PRIMARILY TO SERVE THE PURPOSE OF CONTROL BY THE LEGISLATURE. THE ACCRUALS SYSTEM USED IN THE ACCOUNTS OF A NORMAL COMMERCIAL OPERATION WOULD NOT MEET THIS PURPOSE,+ SIR JOHN SAID,
THE STATEMENT OF ASSETS AND LIABILITIES CONSEQUENTLY SHOWED THE CASH ASSETS AND LIABILITIES OF THE GOVERNMENT. THE DIFFERENCE BETWEEN THE TOTAL ASSETS AND TOTAL LIABILITIES WAS SHOWN AS THE GENERAL REVENUE BALANCE ACCOUNT, ON THAT STATEMENT. THAT BALANCE, WHICH WAS THE SUM OF ACCUMULATED CASH SURPLUSES LESS CASH DEFICITS, WAS AVAILABLE FOR APPROPRIATION BY THE COUNCIL FOR EXPENDITURE ON GOVERNMENT SERVICES.
/+1;¡IL EXPLA, INS