XN000022-1972-03-15 — Page 17

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Wednesday, March 15, 1972

The most welcome feature of next year's Estimates was its great leap

forward in expenditure, he said.

The 25 per cent increase compared well with the 17, 18, 4, 5 and 11 per

cent over the previous four years from 1968/69.

"However, closer examination reveals that this great leap lies mainly

in the considerably increased cost of our Civil Service which amounts to almost

20 per cent over that of this year while in the last five years the average

increase was ten per cent."

He said the $227 million increase for next year represented 31 per cent

of the total increase budgetted.

Civil Service Cost

"The total estimated personal emoluments for 1972/73 is over one half

of the total recurrent expenditure and over one third of our total expenditure

and certainly points to the very high cost of our Civil Service."

He added that the estimated increase of $259 million in next year's

revenue would be almost absorbed by the increase in Civil Service cost.

"Indeed, in the words of my honourable Friend the 1971 Salaries Commission

What he said also reflects the opinion of

has proved to be a costly exercise.

his predecessor held in 1966 that the cost of our Civil Service was

disproportionately high to our means," he said.

On capital expenditure, Mr. Szeto Wai pointed out that the $280 million increase in non-recurrent public works programme represented nearly 82 per cent

of the total increase of $343 million.

/The increase ***