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to apply (what about the proposed lottery, purchase tax on luxuries, increased liquor and tobacco duties etc?) The advice of BIR and /or B/TDE should be sought.
The local Government's negative attitude, as expressed in para 6 of their despatch
NO. 100- "the main aim has been to achieve a balance between revenue and
Fecurrent Expenditure" - must clearly be changed as the prelude to the adoption
of a worthwhile financial policy.
EXPENDITURE
arrives next
4. Recurrent Expenditure, at $150m, is some $30m up on last year's revised
figures. This increase is mainly due to extra awards under personal emoluments.
At $64m, or some 42% of recurrent expenditure, those are too high. The Governor
is awake to the fact that the administration is overstaffed lower down he should
Expert be given every encouragement to use the axe before the 0 and M
year. It is very difficult to judge, at this distance, exactly where the expenditure is extravagant but it seems pretty obvious that this is the case. One
small example is eg. Hd. VI subventions which is up from $193,000 last year to
$750,000. This hardly indicates a policy of retrenchment.
It is a question both
of cutting back Governmental expenditure, and of reallocating it so as to make
sure that it is going on what are the right things in the long term interests of
the Colony eg. development, defence etc.
G
5. Special expenditure to the tune of $45m, is going to be met from the
Colony's local loan, see pps 93-5 of the estimates. Are first things being put
first? It should be noted that quite a number of these projects are developmental.
SUMMARY
Above all
6. We should press for a new approach to the Colony's finances.
revenue must be tackled with spirit, for all the good reasons which have been
hammered home time and again. The money is there, and however difficult it is to
tap, means must clearly be found to do so. Given the will, I am sure that ways
will be forthcoming. Expenditure should be scrutinised, with the object of cutting
out inessentials and diverting it, as necessary, to better purposes, or putting it
to reserve.
No comments yet.
Private notes are available after approval.