WEDNESDAY, MARCH 7, 1990
GOVT MUST SEEK TO BROADEN REVENUE BASE
THE
EXCEED PIERS
THE GOVERNMENT NEEDS TO MAINTAIN THE DISCIPLINE THAT, OVER YEARS, THE GROWTH RATE OF PUBLIC SECTOR EXPENDURE SHOULD NOT THE GROWTH OF THE ECONOMY, THE FINANCIAL SECRETARY, THE HON SIR JACOBS, SAID TODAY.
AND AS SLOWER ECONOMIC GROWTH WILL AFFECT THE GROWTH IN REVENUE, REDUCE ITS THE GOVERNMENT MUST SEEK TO BROADEN THE REVENUE BASE AND VULNERABILITY TO FLUCTUATIONS IN THE ECONOMY, HE SAID.
SPEAKING ON THE STRATEGY FOR PUBLIC FINANCES WHEN PRESENTING HIS BUDGET, SIR PIERS SAID THAT TO HELP ACHIEVE THE DISCIPLINE OF KEEPING THE THE GROWTH RATE OF PUBLIC SECTOR EXPENDITURE WITHIN THE GROWTH OF
RANGE MEDIUM
FORECAST TO ECONOMY,
GOVERNMENT LOOKED TO THE THE PROVIDE THE OVERALL FRAMEWORK WITHIN WHICH TO PLAN ITS SPENDING.
"BY LOOKING SEVERAL YEARS AHEAD WE CAN DETERMINE TRENDS AND, NECESSARY, TAKE CORRECTIVE ACTION," HE SAID.
IF
WAS BASED SIR PIERS SAID SINCE THE MEDIUM RANGE FORECAST
ECONOMY, ASSUMPTIONS REGARDING THE EXPECTED PERFORMANCE OF THE
THE PLANNING PERIOD ASSUMED RATE OF
OF THE GDP OVER GROWTH CRITICAL.
"WE ARE CONCERNED WITH THE TREND OVER THE PERIOD AND YEAR-ON-YEAR VARIATIONS.
ON
THE
WAS
NOT
WITH
"LAST YEAR, FOR THE PURPOSE OF THE FORECAST, I ASSUMED THAT TREND GROWTH RATE OF GDP WOULD BE SIX PER CENT PER ANNUM.
"HAVING
THE
THE GENERAL PURPOSES 5.5 PER CENT
TO AND DEVELOPMENTS ΤΟ REGARD
RECENT ECONOMIC OUTLOOK, I HAVE COME TO THE VIEW THAT FOR PLANNING THE TREND GDP GROWTH ASSUMPTION SHOULD BE LOWERED TO PER ANNUM," HE SAID.
GROWTH HOWEVER, HE CAUTIONED THAT WITH A THREE PER CENT RATE OF
5.5 PER CENT PER BEING EXPECTED IN 1990, IF A TREND GROWTH RATE OF ANNUM WAS TO BE ACHIEVED HIGHER RATES OF GROWTH WOULD BE NEEDED IN THE LATER YEARS.
OF
NOTWITHSTANDING THE THE FINANCIAL SECRETARY POINTED OUT THAT
YEARS, SOMEWHAT SLOWER TREND GROWTH RATE ASSUMPTION FOR THE NEXT FEW
PROGRAMME
PUBLIC TO A THE GOVERNMENT WAS FIRMLY COMMITTED
INVESTMENT IN HONG A MAJOR AND NECESSARY EXPENDITURE REPRESENTING
EVEN IMPROVE KONG'S FUTURE AND NEEDED TO MAINTAIN AND IN SOME AREAS EXISTING SERVICES.
H
FOR A
"ALL THIS WILL TAKE US BEYOND OUR BUDGETARY GUIDELINES TIME,
HE SAID, ADDING THAT THE BREACHING OF THESE GUIDELINES COULD ON EXPENDITURE, OCCASIONS BE JUSTIFIED, PARTICULARLY AS REGARDS CAPITAL AUT THE LEVEL OF RECURRENT EXPENDITURE MUST BE CONTROL.
KEPT UNDER STRICT
/WHILE CONCEDING