XN000022-1973-02-28 — Page 16

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Wednesday, February 28, 1973

$900 MILLION SURPLUS PREDICTED

Largest Ever Experienced

The budgetted surplus of $47 million for the 1972/73 financial year

has turned into a $722 million surplus, and the final figure is likely to be

even higher.

Reporting this during his Budget speech today, the Financial Secretary,

the Hon. C.P. Haddon-Cave, said: "In absolute terms this is the largest surplus

ever experienced, but as a percentage of total revenue (16 per cent) it is the

lowest since 1968/69."

He predicted that on the basis of daily receipts and payments recorded

by the Treasury up to a few days ago the actual surplus was likely to be nearer

to $900 million

representing 19 per cent of total revenue, or slightly above

971/72.

the average of the three years ending 1971/72.

At the same time, the Financial Secretary announced that he would

ask the Finance Committee next month to appropriate $500 million of this year's

surplus to a special fund from which withdrawals would be made for capital

investment in the Mass Transit Railway Corporation.

Mr. Haddon-Cave said that if this proposal was approved it would have

the effect of reducing this year's surplus to $400 million, on the basis that

the final surplus would amount to $900 million.

/Reviewing