XN000022-1972-03-01 — Page 12

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Wednesday, March 1, 1972

GROWTH RATE OF REVENUE EXPECTED TO EASE OFF

Consistent With Immediate Economic Prospects

The Financial Secretary, the Hon. C.P. Haddon-Cave anticipates an increase in recurrent revenue but a drop in capital revenue in the

coming financial year.

Speaking on the Budget in the Legislative Council today, he said the recurrent revenue at $3,440 million represented a nine per cent

increase over the revised estimate for 1971/72.

Capital revenue at.

$287 million represented a six per cent decline on the revised estimate

for the current year.

Total revenue at $3,727 million was thus seven per cent higher

than the revised estimate for 1971/72.

Mr. Haddon-Cave said the revised estimate for 1971/72 was

13 per cent up on 1970/71 which, in turn, was 24 per cent up on 1969/70.

"In other words, I expect the rate of growth of revenue to ease off again, but I believe this to be consistent with the view I have taken of our immediate economic prospects, remembering that the yields from earnings and profits taxes will be determined by earnings and profits recorded in the year 1971/72."

The Financial Secretary said it was nevertheless very satisfactory to be able to estimate for an increase in revenue of $259 million, making a total increase in the three years ending 1972/73 of $1,246 million,

or just twice the increase of 1563 million achieved in the three

previous years ending 1969/70.

/He said this ..........