9
WEDNESDAY, MARCH 1, 1989
OTHER INCREASES IN FUND
IN
EXPENDITURE WERE FROM THE CAPITAL WORKS RESERVE FUND, BECAUSE OF HIGHER THAN EXPECTED COST INCREASES THE CONSTRUCTION INDUSTRY AND SOME ACCELERATION OF CAPITAL PROJECTS.
SPENDING IN CASH TERMS FROM THE GENERAL REVENUE ACCOUNT AND FROM THE FUNDS TOGETHER WAS LIKELY TO BE ABOUT 20 PER CENT ABOVE THE ACTUAL FIGURE FOR 1987-88 AND ABOUT FOUR PER CENT ABOVE THE ORGINAL ESTIMATES, HE ADDED.
CONSOLIDATED ACCOUNT EXPENDITURE, WHICH INCLUDED HOUSING AUTHORITY AND URBAN AND REGIONAL COUNCILS EXPENDITURE,
WAS, IN CASH TERMS, EXPECTED TO BE ABOUT 22 PER CENT ABOVE THE ACTUAL FIGURE FOR 1987-88.
EXPRESSED IN REAL TERMS, THE INCREASE WAS ABOUT NINE PER CENT COMPARED WITH AN ORIGINAL ESTIMATE OF SEVEN PER CENT.
MR JACOBS SAID THE GROWTH IN THE SERVICE WAS ABOUT 3.3 PER CENT.
ESTABLISHMENT
OF THE CIVIL
"THIS IS STILL IN EXCESS OF OUR GUIDELINE OF 2.5 PER CENT, AND WE MUST CONTINUE OUR EFFORTS TO CONTROL THE SIZE OF THE CIVIL SERVICE AS WELL AS OVERALL EXPENDITURE," HE SAID.
REFERRING TO REVENUE, MR JACOBS SAID THAT THE HIGHER THAN EXPECTED OUTTURN WAS PARTICULARLY NOTEWORTHY.
"IN PREPARING THE 1988-89 ESTIMATE WE MADE ALLOWANCE ANTICIPATED EFFECTS OF THE EVENTS OF OCTOBER 1987,
FOR THE
中
HE SAID.
"AS I HAVE ALREADY SAID, THOSE EVENTS HAD REMARKABLY LITTLE IMPACT. FURTHERMORE, THE ESTIMATE WAS BASED ON A GDP GROWTH OF AROUND 14 PER CENT IN 1987 AND FIVE PER CENT IN 1988.
"THE GDP GREW FASTER IN 1988 THAN EXPECTED, AND THE REVISED ESTIMATE FOR GENERAL REVENUE EXCEEDS THE BUDGET BY 21 PER CENT.'
MR JACOBS SAID REVENUE FOR THE ACCOUNT OF THE VARIOUS FUNDS WAS NOW EXPECTED TO BE ABOUT SEVEN PER CENT BELOW THE ESTIMATE MAINLY BECAUSE REVENUE WHICH WAS EXPECTED TO ACCRUE ΤΟ THE HOME OWNERSHIP FUND WOULD NOW ACCRUE TO THE HOUSING AUTHORITY.
BUT THIS REDUCTION WAS LARGELY OFFSET BY HIGHER THAN EXPECTED PROCEEDS FROM LAND SALES. COMBINING GENERAL REVENUE ACCOUNT AND FUND ACCOUNT REVENUE, THE INCREASE ON THE ORIGINAL BUDGET WAS 18 PER CENT.
"ON THE BASIS OF THIS INCREASED REVENUE OUTTURN, AND DESPITE EXPENDITURE BEING ABOVE THE ESTIMATE, I EXPECT AN OVERALL SURPLUS IN 1988-89 OF $14.2 BILLION COMPARED WITH A BUDGETTED SURPLUS OF $5.5 BILLION, HE SAID.
"
"IN SUM, CONSOLIDATED ACCOUNT ESTIMATED TO BE 15.4 PER CENT OF GDP.
EXPENDITURE IN 1988-89
IS
/RECURRENT EXPENDITURE .......