XN000022-1972-03-01 — Page 34

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Wednesday, March 1, 1972

REVENUE TRENDS FROM 1961-62 TO 1972-73

Show Growing Dependence On Direct Taxation

The revenue trends over the 12 years 1961-62 to 1972-73 show

there has been a growing dependence on direct taxation

cent to 28 per cent.

-

from 21 per

The Financial Secretary, the Hon. C.P. Haddon-Cave, stated this today when he presented his Budget proposals to the Legislative

Council.

This, he added, had been coupled with the maintenance of the contribution by various fees and charges (around 20 per cent), despite the difficulty of keeping them in step with rising costs.

At the same time, the role of indirect taxes had declined, from

he said.

41 per cent to 34 per cent of the total revenue,

"These trends reflect the underlying philosophy of our fiscal

policies and are highly appropriate to our circumstances, though I can foresee the day when certain indirect taxes assume a more important role

for reasons which are partly non-fiscal."

On the budgetted surplus of $70.3 million, Mr. Haddon Cave said it did not take into account further commitments likely to be approved in respect of teachers salaries, medical subventions, increases in pensions and public assistance amounting to $100 million, of which 342 million might be considered a fair charge against this year's surplus.

"I do not really expect the final accounts for 1972-73 to reveal

a deficit although, theoretically, this could happen."

/He said