XN000022-1972-03-01 — Page 23

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Wednesday, March 1, 1972

The increase on recurrent account was an important element

in the situation also, Mr. Haddon-Cave said. Average recurrent expenditure

in the three years ending 1969/70 was $1,487 million and would rise to

32,189 million in the three years ending 1972/73.

"This is an increase of no less than 47 per cent which may.

be compared with the increase of 104 per cent in capital expenditure,"

he said.

Mr. Haddon-Cave drew attention to the differences between the

draft cstimates for 1972/73 and the revised estimates for 1971/72, and

said when one examines these differences the role of expenditure on

recurrent services began to look oven more significant. Of the overall

increase of $727 million, „384 million was on recurrent account and

$343 million on capital account.

Dangerous High Level

"This means that, in the coming year, recurrent expenditure

as a proportion of recurrent revenue will reach the dangerously high

level of 73 per cent, compared with 68 per cent this year. We should

aim to keep 30 per cent of recurrent revenue available to finance the

deficit on capital account and I hope, therefore, the margin between

recurrent revenue and expenditure will widen again in 1973/74."

There were two main elements in the increase of 1384 million

One was civil service emoluments, amounting

in recurrent expenditure.

to $218 million. The other was recurrent subventions, amounting to

$73 million.

/As regards