XN000022-1976-02-25 — Page 9

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WEDNESDAY, FEBRUARY 25, 1976

WITH THE YEAR OF THE DRAGON WE ENTER THE SECOND HALF OF THIS DECADE. THE UNDERLYING ASSUMPTION OF THE GOVERNMENT'S BUDGETARY STRATEGY FOR THE COMING FINANCIAL YEAR IS THAT THE ECONOMY IS NOW EMERGING FROM TWO YEARS OF PAUSE AND IN GOOD SHAPE. WE PROTECTED THE ECONOMY FROM INFLATION AND WE AVOIDED STOP-GO DURING THESE DIFFICULT YEARS IN THAT WE MAINTAINED SERVICES AND WE DID NOT CUT BACK ON CAPITAL WORKS ACTUALLY IN. HAND. THERE WILL BE A RESUMPTION OF ECONOMIC GROWTH IN 1976 AND SO THE PAUSE IMPOSED ON THE GROWTH OF PUBLIC EXPENDITURE, PARTICULARLY THIS YEAR, MAY NOW BE LIFTED. BUT WE HAVE LIFTED IT AS SELECTIVELY AS POSSIBLE SO THAT REALLY NOTICEABLE ADVANCES MAY BE MADE IN AREAS OF HIGH PRIORITY.

OF COURSE, OUR ECONOMY REMAINS SENSITIVE TO THE STATE OF THE WORLD ECONOMY AND OUR REVENUES SENSITIVE TO THE STATE OF OUR OWN ECONOMY BUT, IF THE RECOVERY OF WORLD TRADE NOW UNDER WAY CONTINUES, I AM CONFIDENT THAT WE CAN LOOK FORWARD TO STEADY AND UNINTERRUPTED PROGRESS.

GOODNIGHT.

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