XN000022-1979-10-10 — Page 18

WEDNESDAY, OCTOBER 10, 1979

16

SURPLUS STILL EXPECTED IN 1979/80 ACCOUNTS

*****

THE GOVERNMENT ACCOUNTS FOR THE CURRENT FISCAL YEAR ARE STILL EXPECTED TO SHOW A SURPLUS BUT IT IS NOT POSSIBLE TO SAY AT THIS STAGE HOW CLOSELY IT WILL COINCIDE WITH THAT PROVIDED FOR IN THE BUDGET, THE GOVERNOR, SIR MURRAY MACLEHOSE SAID TODAY (WEDNESDAY).

REVIEWING THE PUBLIC FINANCES, SIR MURRAY SAID REVENUE COLLECTIONS SO FAR THIS YEAR HAVE EXCEEDED EXPECTATIONS AT THE TIME OF THE BUDGET AND ARE FORECAST TO SURPASS THE ORIGINAL ESTIMATE,

+BUT ANY INCREASED REVENUE WILL BE ABSORBED IN MEETING INCREASED EXPENDITURE ON BOTH THE RECURRENT AND CAPITAL ACCOUNTS,+ HE SAID.

ADDITIONAL EXPENDITURE NOT PROVIDED FOR IN THE ESTIMATES IS BEING INCURRED AS A RESULT OF THE 1979 CIVIL SERVICE SALARY AWARDS THE INTRODUCTION OF HIGHER PUBLIC ASSISTANCE RATES AND A RISE IN PAYMENTS UNDER THE DEFENCE COSTS AGREEMENT FOLLOWING PAY AWARDS TO THE ARMED SERVICES AND AS A RESULT OF THE APPRECIATION OF THE POUND STERLING.

SIR MURRAY SAID IT HAD ALSO BEEN NECESSARY TO UNDERTAKE CONSIDERABLE COMMITMENTS, NOT FORESEEN WHEN THE ESTIMATES WERE PREPARED, IN COUNTERING ILLEGAL IMMIGRATION FROM CHINA AND DEALING WITH THE INFLOW OF REFUGEES FROM VIETNAM,

THIS HAS INCLUDED REINFORCEMENT OF THE GARRISON, ADDITIONAL STAFF FOR THE IMMIGRATION DEPARTMENT, THE REPLACEMENT OF POLICE LAUNCHES, AND PROVISION FOR REFUGEES.

ON CAPITAL ACCOUNT, SIR MURRAY SAID TOTAL EXPENDITURE ON THE PUBLIC WORKS PROGRAMME WAS LIKELY TO BE ABOUT 25 PER CENT GREATER THAN PROVIDED FOR IN THE ESTIMATES.

+THIS IS DUE TO SOME ADDITIONAL COMMITMENTS ON SUCH THINGS AS REFUGEE CAMPS AS WELL AS TO SUBSTANTIAL INCREASES IN CONSTRUCTION COSTS, HE SAID.

/17