XN000022-1978-03-01 — Page 5

WEDNESDAY, MARCH 1, 1978

THIS WAS DUE TO SAVINGS IN MOST PERSONAL EMOLUMENTS SUBHEADS AS IT TOOK LONGER THAN EXPECTED TO FILL NEW VACANT POSTS, HE ADDED.

AS FOR CAPITAL ACCOUNT, THE FINANCIAL SECRETARY SAID THERE IS A MET UNDER-SPENDING OF 97 MILLION (ORIGINAL ESTIMATE $2,009 MILLION= REVISED ESTIMATE $1,912 MILLION). THIS REPRESENTS A "UCH BETTER PERFORMANCE THAN IN THE LAST TWO YEARS WHEN IN 1976-77 WE UNDERSPENT 556 MILLION AND IN 1975-76, BY $415 MILLION.

OVERALL, THE GOVERNMENT HAS ACHIEVED THE TARGETS ORIGINALLY SET AT THE BEGINNING OF 1977-78, AS THE REVISED EXPENDITURE ESTIMATE, AT $8,160 MILLION, IS FOR THE THIRD RUNNING, LESS THAN THE APPROVED ESTIMATE, BUT THIS TIME BY ONLY 385 MILLION, OR BY ONLY ONE PER CENT OF THE APPROVED ESTIMATE OF $8,245 MILLION, MR. HADDON-CAVE NOTED.

TURNING TO THE GOVERNMENT'S FISCAL RESERVES, THE FINANCIAL SECRETARY ESTIMATED THAT THE RESERVES, AT $3,713 MILLION AT THE BEGINNING OF THIS FINANCIAL YEAR, WILL STAND AT $4,890 MILLION AT THE BEGINNING OF 1978-79.

HE SAID THE GOVERNMENT NEED TO EARMARK AT LEAST $3,200 MILLION OF OUR RESERVES TO SECURE OUR CONTINGENT LIABILITIES WHICH WILL STAND AT AROUND 26,400 MILLION AT MARCH 31, 1979, RISING TO $9,500 MILLION BY MARCH 31, 1982. (THE LIABILITIES INCLUDE GOVERNMENT GUARANTEES IN RESPECT OF THE MASS TRANSIT RAILWAY CORPORATION'S LOANS AND GUARANTEES IN RESPECT OF MORTGAGE LOANS BY BANKS MADE UNDER THE HOME OWNERSHIP SCHEME.)

+THAT LEAVES 31,690 MILLION FOR SHORT TERM DIFFICULTIES AND TO FINANCE OUR SEASONAL DEFICITS AT 16.5 PER CENT, THIS IS A LITTLE BETTER THAN OUR GUIDELINE OF 15 PER CENT OF ESTIMATED EXPENDITURE IN THE ENSUING YEAR,+ MR. HADDON-CAVE SAID.

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GOVERNMENT EXPENDITURE FOR 1978-79 UP 26 PER CENT

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THE GOVERNMENT'S OVERALL EXPENDITURE FOR 1978/79 IS ESTIMATED AT $10,266 MILLION AN INCREASE OF 26 PER CENT ON THE 1977/78 REVISED ESTIMATES AND TWICE THE ACTUAL EXPENDITURE IN 1974/75.

DEALING WITH THE DRAFT ESTIMATES OF EXPENDITURE BY THEIR FUNCTIONAL COMPONENTS, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE ANNOUNCED THAT $7,323 MILLION WILL GO TO RECURRENT SERVICES AND $2,943 MILLION TO CAPITAL EXPENDITURE.

ESTIMATED EXPENDITURE ON RECURRENT SERVICES FOR 1978/79 REPRESENTS AN INCREASE OF $1,075 MILLION, OR 17 PER CENT, OVER THE REVISED ESTIMATES FOR THE CURRENT FINANCIAL YEAR OF $6,248 MILLION.

/CIVIL SERVICE