XN000022-1978-03-01 — Page 7

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WEDNESDAY, MARCH 1, 1978

+BALANCED BUDGET FOR 1978/79

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THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TODAY PROPOSED A BALANCED BUDGET FOR THE FINANCIAL YEAR 1978-79.

+THE DIFFERENCE BETWEEN MY ESTIMATE OF REVENUE OF $10,366 MILLION SHOWN IN THE REVENUE ESTIMATES AS PRINTED AND THE DRAFT ESTIMATES OF EXPENDITURE AMOUNTING TO 10,266 IS $100 MILLION, + HE TOLD THE LEGISLATIVE COUNCIL.

2UT, AFTER TAKING INTO ACCOUNT $120 MILLION, THE NET COST TO THE REVENUE IN IMPLEMENTING REVENUE PROPOSALS, IT WILL TURN THE CUDGET INTO A SMALL DEFICIT OF $20 MILLION, MŘ. HADDON-CAVE SAID.

HE SAID THE ESTIMATE OF RECURRENT REVENUE, AT $9,130 ILLION, REPRESENTED AN INCREASE OF $1,056 MILLION, OR 13 PER CENT, OVER THE REVISED ESTIMATE FOR 1977-78 CF 8,074 MILLION.

EARNINGS AND PROFITS TAX ACCOUNTED FOR $3,990 MILLION, OR 44 PER CENT, OF TOTAL RECURRENT REVENUE. +THIS REPRESENTS AN INCREASE OF CE15 MILLION OVER THE REVISED ESTIMATE FOR 1977-78. THANKS TO THE SURGE OF INCOMES IN 1976, THE FIRST YEAR OF RECOVERY AFTER THE RECESSION, HE SAID.

THE YIELD FROM GENERAL RATES ESTIATED AT $795 MILLION, 13 AN INCREASE OF 25 MILLION, CR 12 PER CENT, OVER THE REVISED ESTIMATE FOR 1977-78 OF 710 MILLION. THIS INCREASE ALLOWS FOR THE EFFECT OF THE SECOND YEAR OF THE SCHEME DESIGNED TO CUSHION THE IMPACT OF THE NEW VALUATION LIST APPLICABLE FROM 1977-78, THE FURTHER EXTENSION OF RATING IN THE NEW TERRITORIES AND THE YIELD FROM NEW DEVELOPMENTS IN THE UREAN AREAS WHICH ILL BECOME LIABLE TO RATES FOR THE FIRST TIME,+ HE SAID.

THE YIELD FROM STAMP DUTIES, ESTIMATED AT $550 MILLION, IS AN INCREASE OF $60 MILLION, CA 12 PER CENT, OVER THE REVISED ESTIMATE FOR 1977-78. +THIS IS ALMOST ENTIRELY DUE TO

ADDITIONAL ASSIGNMENTS OF PROPERTY WHICH WILL CONTRIBUTE NEARLY 55 PER CENT TO TOTAL STAMP REVENUE, ABOUT THE SAME AS IN 1977-75, EUT WELL UP ON THE THREE PREVIOUS YEARS, HE SAID.

THE FINANCIAL SECRETARY ESTIMATED THAT REVENUE FROM BETS AND SWEEPS TAXES MOULD YIELD NO LESS THAN $480 MILLION IN 1978-79.

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MR. HADDON-CAVE ESTIMATED CAPITAL REVENUE TO LE (1,236 MILLION, AN INCREASE OF $75 MILLION ON THE REVISED ESTIMATE FOR 1277-7- OF $1,161 MILLION. THIS INCREASE IS MADE UP OF AN ADDITIONAL „120 MILLION FOR TAXI CONCESSIONS AND 15 MILLION FOR ESTATE DUTY AND A DECREASE OF 61 MILLION FROM LAND SALES, PRIVATE TREATY GRANTS, MODIFICATIONS AND RE-CRANTS, HE SAID. IN SPITE OF THIS DECREASE HE POINTED CUT THAT, AT 874 ILLICA, EXPECTED REVENUE FROM LAND TRANSACTIONS AG LGUYANT BY HISTORICAL STANDARDS AND THAT LAND SALES SHOULD YIELD „669 HILLIC'.

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/AS FOR