XN000022-1974-02-27 — Page 13

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Wednesday, February 27, 1974

Speaking on revenue, the Financial-Secretary said the revised

estimate of revenue for this year at $5,276 million represented an increase

of $340 million on actual revenue in 1972-73.

After discounting the element in actual revenue in 1972-73 for

revenue transferred to the Urban Council and the Housing Authority from

April 1, 1973, the increase in revenue for the General Revenue Account is

8.7 per cent.

Mr. Haddon-Cave described the rate of increase as the "lowest"

since 1967/68,

But, he added, it followed a year in which "both recurrent and

capital revenue were exceptionally buoyant as a result of the high level

of turnover on the stock exchanges and the state of the property market."

Turning to expenditure, the Financial Secretary noted that for

the fourth consecutive year, actual expenditure in 1973-74 was likely to

exceed the original estimate and by no less than $424 million or by 9.6

per cent.

Referring to the main items of recurrent account, he said that the

eight per cent salary increase for the public service, the adjustment to

Police pay and the special adjustment of certain public service salaries

accounted for $133 million of the total figure of excesses.

The net cost of additional posts approved and filled during the

year accounts for another $35 million.

Salary increases by subvented organisations cost no less than $140

million, "reflecting the very substantial cost of revising teachers' salaries,"

Mr. Haddon-Cave said.

Increased rates for public assistance and for infirmity and disability

allowances to keep them in line with cost-of-living movements and a larger

than anticipated case load, account for a further $38 million.

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