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WEDNESDAY, MARCH 1, 1989
'IN THIS WAY, WE WILL BE EARMARKING SOME OF OUR ACCUMULATING SURPLUSES TO FINANCE OUR INFRASTRUCTURAL DEVELOPMENT PROGRAMME OVER THE NEXT 10 TO 15 YEARS, HE SAID.
THE DETAILED ACCOUNTING ARRANGEMENTS WERE NOT YET FINALISED BUT HE ENVISAGED TRANSFERS BOTH TO THE CAPITAL WORKS RESERVE FUND IN RESPECT OF THOSE PROJECTS WHICH WOULD BE A PART OF THE PUBLIC WORKS PROGRAMME, AND ALSO TO A NEW FUND FOR INVESTMENT IN THOSE PROJECTS WHICH MIGHT ATTRACT THE PRIVATE SECTOR OR WHICH MIGHT BE IMPLEMENTED BY STATUTORY AUTHORITIES.
"AFTER THESE TRANSFERS, THE UNASSIGNED RESERVES WILL STILL PROVIDE COVER FOR OUR CONTINGENT LIABILITIES AND PROTECTION AGAINST SHORT TERM CASH FLOW FLUCTUATIONS, AND WILL ASSIST IN MAINTAINING FISCAL STABILITY," HE SAID.
SURPLUS FORECAST FOR 1989-90
AND
1989-90,
REVENUE
VARIOUS
BILLION,
THE DRAFT ESTIMATES OF EXPENDITURE
REVENUE FOR BEFORE REVENUE MEASURES, INDICATE A SURPLUS ON GENERAL ACCOUNT OF $3.4 BILLION AND AN INCREASE IN THE BALANCES OF FUNDS OF $8.7 BILLION, GIVING AN OVERALL SURPLUS OF $12.1 THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY}.
HOWEVER, MR JACOBS EXPLAINED THAT TAX CONCESSIONS WOULD REDUCE THE SURPLUS ON GENERAL REVENUE ACCOUNT TO 32.8 BILLION, AND THE OVERALL SURPLUS TO $11.5 BILLION.
MR JACOBS SAID THE DRAFT ESTIMATES SHOWED EXPENDITURE ON GENERAL REVENUE ACCOUNT, INCLUDING TRANSFER TO FUNDS, OF $70 BILLION.
IN TERMS OF CONSOLIDATED ACCOUNT EXPENDITURE, THE GOVERNMENT PLANNED TO SPEND $11.9 BILLION ON SOCIAL SERVICES, REPRESENTING AN INCREASE OF 13 PER CENT IN REAL TERMS OVER 1988-89; $13.1 BILLION ON EDUCATION, AN INCREASE OF FIVE PER CENT; AND $10.6 ON HOUSING. ALSO AN INCREASE OF FIVE PER CENT.
SPENDING IN THESE AREAS WOULD REPRESENT 45 PER
EXPENDITURE.
CENT OF TOTAL
EXPENDITURE ON SECURITY, THE ENVIRONMENT, AND THE TRANSPORT, WORKS AND WATER SUPPLY GROUP WOULD, TAKEN TOGETHER, INCREASE BY 10 PER CENT,
**THESE INCREASES IN EXPENDITURE. WHICH I WOULD EMPHASISE ARE IN REAL TERMS, REPRESENT THE GOVERNMENT'S CONTINUING EFFORTS ΤΟ SECURE AN IMPROVEMENT IN THE LIVING STANDARDS OF THE COMMUNITY, ESPECIALLY OF THOSE WHO RELY HEAVILY ON PUBLIC SERVICES, MR JACOBS SAID.
"
/MR JACOBS