XN000022-1976-03-24 — Page 5

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WEDNESDAY, MARCH 24, 1976

IF AN ANNUAL INFLATION RATE OF SEVEN PER CENT WAS ASSUMED, THE MID-RANGE OF THE TOTAL AND RECURRENT EXPENDITURES FOR THE FORECAST PERIOD WOULD BE VERY CLOSE TO THE TWO RESPECTIVE TREND LINES, AND WOULD BE CONSISTENT WITH THE HISTORICAL GROWTH RATES.

+ IN THIS RESPECT, I SEE NO REASON TO TRY TO PICK HOLES IN MY HONOURABLE FRIEND'S FORECAST OF EXPENDITURE FOR THE THREE YEARS FOLLOWING THE BUDGET YEAR AND WISH TO EXPRESS MY GENERAL AGREEMENT WITH HIM,+ DR. CHUNG SAID.

COMPARING THE FINANCIAL SECRETARY'S REVENUE FORECAST WITH HISTORICAL TREND, DR. CHUNG OBSERVED THE CONSERVATIVE ATTITUDE TAKEN BY THE FINANCIAL SECRETARY. AS AN EXAMPLE, RECURRENT REVENUE IN THE BUDGET COULD BE NEARER TO $7,000 MILLION THAN $6,000 MILLION. +NEVERTHELESS,+ DR. CHUNG SAID, IN THE WORLD WHERE THE ONLY CERTAINTY IS UNCERTAINTY, IT IS UNDERSTANDABLE FOR THE FINANCIAL SECRETARY TO TAKE A PRUDENT APPROACH IN REVENUE FORECASTING.+

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