WEDNESDAY, MARCH 1, 1989
17
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MR JACOBS SAID THE TOTAL CONSOLIDATED ACCOUNT EXPECTED TO GROW BY NINE PER CENT IN REAL TERMS POINTS ABOVE THE TREND GROWTH RATE OF GDP OF SIX PERIOD OF THE MEDIUM RANGE FORECAST.
IN
HE SAID THE ESTIMATES PROVIDED FOR THE EXISTING SERVICES. OPENING NEW FACILITIES INCREASING DEMAND FOR GOVERNMENT SERVICES.
THE ESTIMATES ALSO PROVIDED FOR SEVERAL
INTRODUCED.
EXPENDITURE WAS
THREE
PERCENTAGE
PER CENT OVER THE
COST OF MAINTAINING 1989-90 AND MEETING
NEW SERVICES TO BE
THESE INCLUDED SETTING UP NEW OVERSEAS ECONOMIC AND TRADE OFFICES IN NORTH AMERICA AND AUSTRALIA AND THE DIVISION OF THE MEDICAL AND HEALTH DEPARTMENT INTO THE HOSPITAL SERVICES DEPARTMENT AND THE DEPARTMENT OF HEALTH.
FI
'EXPENDITURE ON CAPITAL ACCOUNT ALLOWS FOR AN INCREASE IN SPENDING ON THE CAPITAL WORKS PROGRAMME, INCLUDING THE CLEARANCE OF THE KOWLOON WALLED CITY, ON WHICH EXPENDITURE IS EXPECTED TO PEAK IN 1989-90," MR JACOBS SAID.
"EXPENDITURE ON CAPITAL PROGRAMMES IS EXPECTED ΤΟ BE $14.5 BILLION OR 33 PER CENT HIGHER IN CASH TERMS THAN 1988-89.
**
MR JACOBS SAID THE 3.9 PER CENT PROJECTED GROWTH RATE IN THE CIVIL SERVICE INCLUDED ABOUT 5,700 POSTS IN THE GOVERNMENT ALONE,
OF THIS INCREASE, 40 PER CENT WOULD BE FOR POSTS IN THE DISCIPLINED SERVICES AND 25 PER CENT FOR THE HEALTH AND HOSPITAL SERVICES DEPARTMENTS.
THE DRAFT ESTIMATES ALSO PROVIDED FOR TRANSFERS TO FUNDS FROM GENERAL REVENUE ACCOUNT TOTALLING $17.7 BILLION.
PROVISION WAS ALSO MADE FOR EQUITY INVESTMENT IN THE HOUSING AUTHORITY IN 1989-90 AND FOR THE REDEMPTION OF THE GOVERNMENT BONDS FOR $1 BILLION ISSUED IN 1984, WHICH WERE REPAYABLE ON APRIL 9 THIS YEAR.
TURNING TO THE DRAFT ESTIMATES OF REVENUE, MR JACOBS SAID THE GENERAL ACCOUNT REVENUE WAS ESTIMATED то BE $73.4 BILLION, OR AN INCREASE OF ABOUT 13 PER CENT OVER LAST YEAR.
REVENUE FROM DIRECT TAXES WAS EXPECTED TO BE 18 PER CENT OVER THE FIGURE FOR LAST YEAR, AND FOR OTHER REVENUE, EIGHT PER CENT.
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"ON THE BASIS OF THIS FORECAST, DIRECT TAXES WILL REPRESENT PER CENT OF THE TOTAL OF DIRECT AND INDIRECT TAXES TAKEN TOGETHER, COMPARED WITH 62 PER CENT IN 1988-89 AND 60 PER CENT IN 1987-88," MR JACOBS SAID.
/REVENUE ACCRUING