XN000022-1977-03-02 — Page 11

WEDNESDAY, MARCH 2, 1977

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MR. HADDON-CAVE CONSIDERED THAT DEPARTMENTAL OTHER CHARGES TO BE KEPT AT OR BELOW 16 PER CENT OF TOTAL RECURRENT EXPENDITURE WAS REFLECTION OF THE CONTINUED CONCERN OF DEPARTMENTS WITH COST EFFICIENCY.

RECURRENT SUBVENTIONS INCLUDING THOSE FOR THE UNIVERSITY AND POLYTECHNIC GRANTS COMMITTEE ACCOUNT FOR $1,589 MILLION OR 25.5 PER CENT OF TOTAL RECURRENT EXPENDITURE, COMPARED WITH THE REVISED ESTIMATES OF $1,407 MILLION OR 26 PER CENT IN 1976-77 AND AN AVERAGE OF 26.6 PER CENT OVER THE PREVIOUS THREE YEARS.

+OVERALL, TAKING RECURRENT AND CAPITAL SUBVENTIONS TOGETHER, MORE THAN A FIFTH OF TOTAL EXPENDITURE IS DISBURSED BY SUBVENTED ORGANISATIONS AND IT IS FOR THIS REASON THAT A NEW BRANCH IN THE AUDIT DEPARTMENT WAS SET UP THIS YEAR SPECIFICALLY TO SOVER SUBVENTED ORGANISATIONS, AND THE DIRECTOR OF AUDIT WILL BE TAKING A VERY CLOSE LOOK AT ALL THE LARGER ORGANISATIONS OVER THE NEXT COUPLE OF YEARS, SAID THE FINANCIAL SECRETARY.

HONG KONG'S CONTRIBUTION TO THE COST OF ARMED FORCES STATIONED HERE WILL BE $281 MILLION OR, 3.4 PER CENT OF TOTAL EXPENDITURE IN 1977-78, COMPARED WITH 3.2 PER CENT IN 1976-77 AND 1.6 PER CENT IN 1975-76, WE LAST YEAR OF THE PREVIOUS DEFENCE AGREEMENT.

ON THE BROAD TRENDS OF PATTERN OF EXPENDITURE, MR. HADDON-CAVE SAID OVER THE THREE YEARS FROM 1973-74 TO 1975-76, THE PATTERN WAS RATHER DIFFERENT WITH GENERAL SERVICES ABSORBING ONLY 16 PER CENT OF TOTAL EXPENDITURE, BUT COMMUNITY SERVICES ABSORBING AS MUCH AS 26 PER CENT, LARGELY BECAUSE EXPENDITURE ON WATER DEVELOPMENT PROJECTS PEAKED IN THOSE YEARS.

+ IN 1976-77, THE PATTERN SHIFTED AGAIN, WITH INCREASED EXPENDITURE ON LAW AND ORDER PUSHING THE SHARE OF TOTAL EXPENDITURE ABSORBED BY GENERAL SERVICES UP FROM 16 PER CENT TO NEARLY 20 PER CENT, AND THE SHARE ABSORBED BY COMMUNITY SERVICES DECLINED TO 21 PER CENT.+

+GIVEN THE INCREASES IN EXPENDITURE PROVIDED FOR IN THE DRAFT ESTIMATES FOR 1977-78, THE PATTERN OF EXPENDITURE BY GROUPS OF SERVICES IS NOT UNSATISFACTORY, BUT WE MUST NOT BE COMPLACENT ABOUT THE COST OF GENERAL SERVICES AND THE VARIOUS SERVICES IN THE RESIDUAL GROUP, FOR WE MUST MAXIMISE OUR EFFORTS IN RESPECT OF ECONOMIC COMMUNITY AND SOCIAL SERVICES.+ SAID THE FINANCIAL SECRETARY.

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