WEDNESDAY, FEBRUARY 25, 1987
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+PROFITS AND SALARIES TAX YIELDS HAVE GROWN AHEAD OF EVEN THE PRELIMINARY ESTIMATE OF ODP GROWTH FOR 1986, REFLECTING BOTH A MAJOR RESURGENCE IN THE PROFITS OF PROPERTY AND EXPORT ORIENTED BUSINESSES, AND SUBSTANTIAL SALARY INCREASES, HE SAID.
AS TO STAMP DUTY, HE NOTED THAT THE TURNOVER ON THE STOCK HARKET HAD BEEN RUNNING WELL AHEAD OF THE LEVEL OF THE PREVIOUS FEW YEARS.
MR JACOBS ADDED THAT THERE HAD BEEN SOME EARLY REPAYMENTS OF DEBTS DUE TO THE GOVERNMENT AMOUNTING TO A TOTAL OF $0.9 BILLION, +ABOUT HALF OF THIS IS DUE TO REPAYMENT OF THE REMAINING KCR DEBT, WHICH WAS REFERRED TO AS A POSSIBILITY IN LAST YEAR'S BUDGET,+
HE SAID.
*VARIANCE FROM ESTIMATES IN OTHER REVENUE AREAS IS RELATIVELY MINOR, AND THE ITEMS LARGELY OFFSET EACH OTHER.
+OVERALL, REVENUE IS NOW FORECAST TO BE SOME $4 BILLION HIGHER THAN PREVIOUSLY EXPECTED REPRESENTING A BAIN OF 8 PER CENT EXCLUDING THE EARLY DEBT REPAYMENTS, OR 10 PER CENT IF THEY ARE TAKEN INTO ACCOUNT, HE SAID.
MR JACOBS SAID TOTAL EXPENDITURE ON GENERAL REVENUE ACCOUNT BEFORE TRANSFERS TO FUNDS WAS NOW EXPECTED TO BE $33.9 BILLION, WHICH WAS IN LINE WITH BUDGET.
+WE ARE SEEING THE RESULTS OF ANOTHER YEAR OF TIGHT BUDGETARY PERFORMANCE. ALL CONTROLLING OFFICERS HAVE PLAYED THEIR PART AND I AM GRATEFUL TO THEM. OUR SYSTEM OF CASH LIMITS IS CLEARLY
EFFECTIVE, HE SAID,
HE NOTED THAT, IN PRACTICE, THE COMBINED EFFECT OF THE TWO PAY AWARDS TO STAFF GRANTED DURING 1986 WAS SLIGHTLY MORE THAN HAD BEEN ANTICIPATED IN FRAMING THE BUDGET. BUT THIS WAS OFFSET BY SOME UNDER-SPENDING ON NON-STAFF DEPARTMENTAL RUNNING COSTS AND AN ADJUSTMENT TO PAYMENTS UNDER THE DEFENCE COSTS AGREEMENT.
THE SIZE OF THE CIVIL SERVICE REMAINED THE MAJOR DETERMINANT OF THE GOVERNMENT'S SPENDING, AND THE DECEMBER ON DECEMBER GROWTH RATE OF 2 PER CENT WAS WITHIN THE PLANNING TARGET AND REFLECTED BOTH FIRM CONTROL AND FURTHER IMPLEMENTATION OF THE SUCCESSFUL PROGRAMME OF VALUE FOR MONEY STUDIES, HE SAID.
NET TRANSFERS TO FUNDS HAD INCREASED BY $1.3 BILLION DUE PARTLY TO THE TRANSFER TO THE MASS TRANSIT FUND OF THE EXCEPTIONAL LOAN REPAYMENT MADE BY THE KCR.
MR JACOBS
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