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FRIDAY, NOVEMBER 18, 1977
+TAKEN TOGETHER, THEREFORE, THE OBJECT OF THE WHOLE EXERCISE IS TO PROVIDE THE GOVERNMENT WITH THE MEANS OF DETERMINING THE PROBABLE LEVEL OF SPENDING THAT COULD BE AFFORDED.+
MR. YEUNG SAID THAT WHEN DEPARTMENTAL RETURNS REACHED THE GOVERNMENT SECRETARIAT IN AUGUST, THEY WERE CAREFULLY CONSIDERED BY THE FINANCE BRANCH IN CONJUNCTION WITH THE POLICY BRANCHES. THIS PROCESS TOOK ABOUT TWO MONTHS.
AS THE HEADS OF DEPARTMENTS PREPARED THE IR SUBMISSIONS, TWO FURTHER SEPARATE EXERCISES TOOK PLACE WITHIN THE GOVERNMENT SECRETARIAT. FIRST, THE FINANCIAL SECRETARY AND HIS ADVISERS TOOK A VIEW ON WHETHER ADDITIONAL RESOURCES COULD BE MADE AVAILABLE FOR FINANCING COMPLETELY NEW SERVICES- SECOND, THE ITEMS OF EXPENDITURE NOT COVERED BY THE PROVISIONALLY ACCEPTABLE LEVEL OF EXPENDITURES WERE SUBMITTED TO THE CHIEF SECRETARY AND HIS PRINCIPAL ADVISERS FOR THEM TO TAKE A VIEW OF THEIR RELATIVE IMPORTANCE.
+THE RESULT OF THE THIS EXERCISE IS A LIST IN WHICH ITEMS OF PROPOSED EXPENDITURE ARE RANKED IN AN ORDER OF PRIORITY.
+ IF IT IS EVENTUALLY DECIDED THAT A GREATER REVENUE YIELD THAN HAS BEEN INDICATED IN THE REVENUE FORECAST COULD BE ACHIEVED, THESE ITEMS OF EXPENDITURE WOULD BE FED INTO THE DRAFT ESTIMATES IN THE ORDER OF PRIORITY AND TO THE EXTENT OF THE ADDITIONAL RESOURCES DETERMINED AS A RESULT OF THESE TWO EXERCISES.
*THE OUTCOME OF ALL THESE ACTIVITES IS, OF COURSE, WELL KNOWN TO YOU. ON COMPLETION THE DRAFT ESTIMATES OF EXPENDITURE ARE INCORPORATED INTO THE FOLLOWING YEAR'S APPROPRIATION BILL. THIS IS INTRODUCED INTO THE LEGISLATIVE COUNCIL BY THE FINANCIAL SECRETARY, TOGETHER WITH THE REVENUE ESTIMATES AND HIS REVENUE PROPOSALS.
+EVENTUALLY, ON THE APPROPRIATION BILL BECOMING LAW THE DRAFT ESTIMATES OF EXPENDITURE BECOME PROPERLY AUTHORISED AND DEFINITELY ARRANGED ESTIMATES OF EXPENDITURE.+
MR. YEUNG SAID UNDER THE PRESENT SYSTEM, HEADS OF DEPARTMENTS AND POLICY BRANCH SECRETARIES WERE IN NO WAY INHIBITED IN ENTERING INTO THE FORECAST THE FINANCIAL CONTENTS OF VARIOUS PROGRAMMES PROVIDED THE CONTENTS BORE REASONABLE RESEMBLANCE TO SPENDING CAPABILITY AND IT WAS THE CHIEF SECRETARY AND HIS PRINCIPAL ADVISERS WHO DETERMINED THE PRIORITY FOR NEW SERVICES.
+BUT, WHEN IT COMES TO DECIDING HOW MUCH WE CAN AFFORD TO SPEND, IT IS THE FINANCIAL SECRETARY AND HIS ADVISERS WHO DETERMINE THE AMOUNT OF REVENUE THAT COULD BE ACHIEVED, HAVING REGARD TO THE LIKELY FUTURE PERFORMANCE OF THE ECONOMY AND TO THE NEED FOR MAINTAINING GROWTH.+
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