WEDNESDAY, APRIL 17, 1991
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THE FINANCIAL SECRETARY POINTED OUT THAT THIS WAS OF PARTICULAR IMPORTANCE IN RELATION TO RECURRENT EXPENDITURE, AND EXPLAINED HOW THE GOVERNMENT WAS, IN FACT, NOW SUCCEEDING IN KEEPING RECURRENT EXPENDITURE WITHIN THE GROWTH RATE OF THE ECONOMY OVER THE PERIOD OF THE MEDIUM RANGE FORECAST.
"THE EXCESS IS IN RELATION TO CAPITAL EXPENDITURE, THAT IS TO
SAY, INVESTMENT IN OUR FUTURE," HE SAID,
NOTING THAT SOME MEMBERS HAD FROM TIME TO TIME WARNED AGAINST ALLOWING THE BUDGET TO BE REVENUE DRIVEN, SIR PIERS SAID: "FRANKLY, I HAVE NEVER LIKED THE EXPRESSIONS EXPENDITURE
+
DRIVEN' OR 'REVENUE DRIVEN'. THEY ARE TOO SIMPLISTIC.
"THE CORRECT APPROACH IN MY VIEW IS THE ONE THAT WE HAVE ADOPTED AND THAT IS, FIRST, TO ENSURE THAT WE HAVE GUIDELINES IN RELATION TO OUR PROGRAMME OF EXPENDITURE; SECONDLY, THAT WE HAVE THE MECHANISMS NECESSARY TO ENABLE US TO ADHERE TO THOSE GUIDELINES; AND LASTLY, THAT IN FACT OVER A PERIOD OF TIME WE DO ADHERE TO THEM, HE
SAID.
"
PRINCIPLE SET IN ESTIMATES FORMULATION: FS
THE
SIR PIERS JACOBS, TODAY THE HON SECRETARY, FINANCIAL
FORMULATION OF THE (WEDNESDAY) SAID THAT A BASIC PRINCIPLE IN THE
SHOULD BE RASED ON ANNUA1, ESTIMATES OF EXPENDITURE IS THAT THEY CURRENT PRICES AND, FOR CAPITAL WORKS, ON CURRENT SPECIFICATIONS.
THE
ANTICIPATE
SPEAKING AT THE CONCLUSION OF THE RESUME BUDGET DEBATE IN LEGISLATIVE COUNCIL, SIR PIERS SAID THE GOVERNMENT DID NOT COST CHANGES AND BUILT THEM INTO THE ESTIMATES.
STANCE
"THIS WOULD REQUIRE THE ADMINISTRATION TO TAKE A PUBLIC ON SUCH SENSITIVE ISSUES AS INFLATION TRENDS OVER TOO LONG A PERIOD OF THE OUTCOME OF TIME, THE FUTURE VALUE OF THE HONG KONG DOLLAR AND FUTURE WAGE AND SALARY NEGOTIATIONS; MORE IMPORTANTLY, IT WOULD LOCK INTO THE ESTIMATES THE CASH VALUE OF THE ADMINISTRATION'S IN THESE AREAS.
ALSO
VIEWS
EVENT "THIS COULD BE DIFFICULT TO RETRIEVE OR TO ADJUST IN THE
PROVED TO BE WRONG, SINCE THAT THE ASSESSMENT OF DEVELOPMENTS EXPENDITURE WOULD HAVE BEEN PLANNED AND TAILORED WITHIN THE PROVISION," HE SAID.
ESTIMATES
WHILE THE ESTIMATE MADE FOR EACH HEAD OF EXPENDITURE UNDER GENERAL REVENUE ACCOUNT WAS DELIBERATELY CALCULATED AT CURRENT PRICES, OF THE THE FINANCIAL SECRETARY SAID SOME PROVISION WAS MADE BY WAY ADDITIONAL COMMITMENTS SUBHEADS FOR POSSIBLE COST INCREASES,
THE
"SO THE TOTAL APPROPRIATION SOUGHT UNDER THE APPROPRIATION BILL
BUDGET, AND SO THE BUDGET IS A DOES INDEED GIVE THE WIDER PICTURE. HE SAID.
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/WHERE THE
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