WEDNESDAY, MAY 9, 1990
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THERE IS A BUDGET STRATEGY: FS
THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT HE DID SET OUT AT LENGTH IN THE BUDGET SPEECH HIS STRATEGY FOR THE PUBLIC FINANCES AS HE HAS DONE IN HIS PREVIOUS SPEECHES.
SIR PIERS WAS RESPONDING TO COMMENTS BY SOME MEMBERS WHO CALLED FOR A LONG-TERM, STRATEGIC APPROACH AND SUGGESTED THAT THIS DID NOT EXIST.
DEBATE ON THE
CONCLUDING THE
SECOND READING OF THE APPROPRIATION BILL 1990, THE FINANCIAL SECRETARY STRESSED THAT THE STRATEGY CLEARLY COVERED MORE THAN ONE FINANCIAL YEAR AND INDEED MARKED THE WAY FORWARD FOR THE YEARS AHEAD.
HE SAID THAT THERE WERE TWO POINTS HE WOULD LIKE TO STRESS IN ANSWER TO MEMBERS' COMMENTS.
"FIRST, SUCCESSIVE FINANCIAL SECRETARIES, INCLUDING MYSELF, HAVE FOLLOWED A BROADLY SIMILAR AND CONSISTENT FINANCIAL STRATEGY. IT HAS то BE FACED, HOWEVER, THAT THE MEASURES WHICH FLOW FROM THAT STRATEGY WILL DIFFER MARKEDLY, ACCORDING TO FACTORS SUCH AS THE CURRENT AND FORECAST STATE OF THE ECONOMY.
"THE STRATEGY FOR A BUDGET DOES NOT EXIST IN A VACUUM. THIS YEAR ONE OF THE KEY FACTORS I HAVE HAD TO TAKE INTO ACCOUNT IS THE DRAMATICALLY LOWER GROWTH RATE OF OUR GROSS DOMESTIC PRODUCT (GDP) COMPARED WITH THE HEADY AND QUITE RECENT DAYS OF 1986 AND 1987, WHEN WE HAD DOUBLE DIGIT GROWTH, HE SAID.
TO
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SECONDLY, SIR PIERS SAID THAT THE IMAGE THAT SOMETIMES SEEMED BK IN PEOPLE'S MINDS OF THE FINANCIAL SECRETARY DASHING OFF THE BUDGET IN A COUPLE OF WEEKS JUST AFTER CHINESE NEW YEAR WAS IN A SENSE FLATTERING.
"THE
REALITY IS QUITE DIFFERENT. THE PROCESS BY WHICH BUDGET STRATEGY IS DEVELOPED IS YEAR-LONG, AND INVOLVES THREE BRANCHES FINANCE, ECONOMIC SERVICES AND MONETARY AFFAIRS.
"WE HAVE ALREADY BEGUN STRATEGIC MEETINGS FOR 1991-92. AND PREPARATION OF THE BUDGET RESTS FIRMLY ON LONG TERM ASSESSMENTS. WE DO NOT JUST LOOK ONE YEAR AHEAD.
WE HAVE REGARD BOTH TO A BROAD 10 YEAR FORECAST AND TO A SOMEWHAT MORE DETAILED 5 YEAR FORECAST, THE LATTER BEING THE MEDIUM RANGE FORECAST. BOTH ARE ESSENTIAL TO OUR PLANNING, THE FINANCIAL SECRETARY EXPLAINED.
·
ATTENTION TO
SIR PIERS SAID THE GOVERNMENT PAID CONSIDERABLE TS GUIDELINES, AND PARTICULARLY TO THE NEED TO KEEP PUBLIC EXPENDITURE GROWTH BROADLY IN LINE WITH THE GROWTH OF GDP.
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