WEDNESDAY, FEBRUARY 26, 1986
5
$39.5 BILLION SPENDING SET FOR '86-87
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TOTAL EXPENDITURE OF $39.5 BILLION ON GENERAL REVENUE ACCOUNT WAS BUDGETED FOR THE 1986-87 FINANCIAL YEAR, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY.
PRESENTING HIS BUDGET, SIR JOHN SAID CIVIL SERVICE GROWTH WAS EXPECTED TO BE AROUND 2.5 PER CENT IN 1986-87.
EVEN WITH DUE REGARD TO CONTINUING AND MOST SUCCESSFUL VALUE FOR MONEY EFFORTS IT WAS CLEAR THAT THE STAFFING REQUIREMENTS OF NEW HOSPITALS, SCHOOLS, FIRE STATIONS, IMMIGRATION POSTS, POLICE AND SO ON MAKÉ SOME GROWTH INEVITABLE, HE NOTED.
NEVERTHELESS, HE SAID THIS FIGURE STILL REPRESENTED A
CONSIDERABLE CONTAINMENT OF DEPARTMENTAL ASPIRATIONS.
+ IT IS BELOW THE PROJECTED RATE OF GROWTH OF TOTAL EXPENDITURE IN REAL TERMS REFLECTING FURTHER IMPROVEMENTS IN THE EFFECTIVE DEPLOYMENT OF STAFF AND INCREASING PRODUCTIVITY, HE ADDED.
SIR JOHN SAID A SUM OF $1.75 BILLION WITHIN THE TOTAL EXPENDITURE HAD BEEN ALLOWED FOR ADDITIONAL COMMITMENTS AND CONTINGENCIES.
+THIS MAKES PROVISION FOR, WITHOUT ASSUMING, POSSIBLE SALARIES ADJUSTMENTS, PLUS THE USUAL RANGE OF NEW AND UNFORESEEN ITEMS THAT ARISE EACH YEAR,+ HE SAID.
WITHIN THE TOTAL EXPENDITURE BUDGET ON GENERAL REVENUE ACCOUNT SIR JOHN PROPOSED THE TRANSFER OF $5.6 BILLION TO THE GOVERNMENT'S VARIOUS FUNDS FOR FINANCING OF CAPITAL EXPENDITURE.
+THIS WILL STABILISE THE SIZE OF THE FUNDS AT AROUND THEIR PRESENT LEVEL, HE SAID.
SIR JOHN SAID THAT THE MEDIUM RANGE STRATEGY AGAINST WHICH GOVERNMENT'S FINANCES WAS NOW MONITORED REQUIRED TOTAL EXPENDITURE TO GROW BY NO MORE THAN THE EXPECTED GROWTH IN THE ECONOMY.
+ INDEED AT LAST EXPENDITURE IS EXPECTED TO BE SHAPED BY LIKELY REVENUE OVER A PERIOD OF YEARS, SIR JOHN SAID.
HE ADDED: +IN THE SHORT TERM THIS BALANCE MAY NOT BE AVAILABLE BECAUSE THERE IS NO EXACT CORRELATION BETWEEN REVENUE AND GDP GROWTH. MOREOVER GDP GROWTH MUST BE CYCLICAL.
+FOR 1986-87 THE CONSOLIDATED ESTIMATES WHICH I NOW PUT BEFORE YOU IMPLY TOTAL EXPENDITURE GROWTH OF 3.8 PER CENT IN REAL TERMS. THIS REAL GROWTH COMPARES WITH A REVISED ESTIMATE OF 3.4 PER CENT IN 1985-86, WHICH WAS HIGH WHEN TESTED AGAINST ACTUAL RATHER THAN ESTIMATED GDP GROWTH. +
/SIR JOHN
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