14
WEDNESDAY, MARCH 4, 1992
DECLINE.
THE PROCEEDS FROM STAMP
DUTY, HOWEVER, WERE FORECAST ΤΟ
ON THE BASIS OF THESE ESTIMATES, MR MACLEOD SAID THE SURPLUS IN THE COMING YEAR WOULD BE AROUND $4 BILLION.
IF A FURTHER $2.4 BILLION FROM THE GOVERNMENT'S BOND PROGRAMME WAS ADDED TO THIS, BY THE END OF MARCH 1993, THE FISCAL RESERVES WOULD TOTAL $98.2 BILLION.
HE SAID IT WAS IMPORTANT THAT THE GOVERNMENT PROPER ROLE OF THE RESERVES.
IDENTIFIED THE
HE POINTED OUT THAT THE ONLY WAY TO ACHIEVE BOTH CONTINUITY AND EFFICIENCY IN DEVELOPING THE GOVERNMENT'S PROGRAMMES FOR THE FUTURE WAS TO MAKE SURE THAT THE GOVERNMENT'S SPENDING REMAINED IN STEP THE PACE OF ECONOMIC GROWTH.
WITH
THIS
HENCE, HE SAID, IT WAS ESSENTIAL THAT PLANS WERE MADE ON REALISTIC BASIS RATHER THAN TAILORING THEM FROM ONE YEAR TO THE NEXT THE BASIS OF AVAILABLE REVENUE, THE CURRENT BUDGET SURPLUS OR THE FORECAST LEVEL OF RESERVES.
"WE MUST HAVE CONSISTENCY IN OUR EXPENDITURE PROGRAMMES IF WE ARE TO SECURE THE BEST VALUE FOR MONEY," HE STRESSED.
SPENDING EXAMINED
FOR THIS REASON, HE SAID THE GOVERNMENT TESTED ITS PLANS AGAINST THE MEDIUM RANGE FORECAST FOR THE ECONOMY, AND THE TREND GROWTH IN PLANNED EXPENDITURE OVER A PERIOD RATHER THAN IN TERMS OF A SINGLE YEAR.
"IF WE LOOK AT THE RESULTS OF THIS EXERCISE SINCE WE STARTED THE CURRENT PLANNING CYCLE IN MID-1990, WE HAVE BEEN PRETTY MUCH ON TARGET, TAKING THE SITUATION AS A WHOLE.
"FOR THE TWO YEARS 1991-92 AND 1992-93, HE ESTIMATED THAT TOTAL GOVERNMENT EXPENDITURE WAS EXPECTED TO GROW BY 10.6%, AGAINST A TARGET OF 10.8%.
HOWEVER, MR MACLEOD SAID THE MEDIUM RANGE FORECAST MADE IT CLEAR THAT THE GOVERNMENT'S REVENUE IN FUTURE YEARS WOULD NOT BR SUFFICIENT TO MEET EXPENDITURE.
"RVRN AFTER THE REVENUE MEASURES I WILL BE PROPOSING SHORTLY, CASH DEFICITS WILL EMERGE AFTER 1992-93.
"HOWEVER, THE END RESULT WILL BE THAT WE SHALL HAVE THE RESERVES WE NEED IN 1996-97, HE SAID.
+
IN ADDRESSING THE NEED TO HAVE ADEQUATE RESERVES. THE FINANCIAL SECRETARY SAID HE HAD BEEN CONSCIOUS THAT THE EARLIER THE GOVERNMENT TOOK THE MEASURES REQUIRED TO AUGMENT THE RESERVES, THE GREATER THE CUMULATIVE EFFECT AND THE GREATER THE GOVERNMENT'S CAPACITY то COPE WITH UNFORESEEN ADVERSE DEVELOPMENTS.
"MY PACKAGE