XN000022-1980-02-27 — Page 25

#EDNESDAY, FEBRUARY 27, 1980

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THE LARGE NUMBER OF CAPITAL PROJECTS NOW UNDERWAY IS REFLECTED IN AN INCREASE IN EXPENDITURE ON CAPITAL SUBVENTIONS TO MEDICAL ORGANISATIONS FROM $29 MILLION IN THE 1979-80 APPROVED ESTIMATES TO $56 MILLION IN THE DRAFT ESTIMATES.

FUNDS ARE ALSO PROVIDED TO IMPROVE STANDARD HOSPITAL DIETS FOR PATIENTS IN GOVERNMENT HOSPITALS AND TO FURTHER EXPAND THE COMMUNITY NURSING SERVICE, INCLUDING THE OPENING OF A NEW NURSING STATION AT PRINCESS MARGARET HOSPITAL WITH FIVE SATELLITE CENTRES IN TSUEN WAN.

THE SCHOOL DENTAL CARE SERVICE WILL COME INTO OPERATION THIS SEPTEMBER AND WILL GRADUALLY BE EXTENDED TO COVER ALL PRIMARY SCHOOL CHILDREN. FOUR SCHOOL DENTAL CLINICS ARE PLANNED IN ADDITION TO THE EXISTING ONE AT THE MACLEHOSE DENTAL CENTRE.

PUBLIC SECTOR SIZE TO RISE TO 19.7 PER CENT

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THE RELATIVE SIZE OF THE PUBLIC SECTOR IN HONG KONG'S GROSS DOMESTIC PRODUCT WILL BE FURTHER INCREASED FROM ITS HISTORICAL HIGH OF 18.7 PER CENT IN 1979-80 TO 19.7 PER CENT IN 1980-81, THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE SAID AT THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON.

+THIS REFLECTS A VERY HIGH LEVEL OF EXPENDITURE ON CONSOLIDATED ACCOUNT AND, WHILST IT MAY BE JUST ACCEPTABLE ON MACRO-ECONOMIC GROUNDS, IT DOES UNDERLINE THE IMPORTANCE OF ALL CONCERNED ENSURING THAT THE VALUE-FOR-MONEY CRITERION IS CONSCIENTIOUSLY OBSERVED AT ALL TIMES, SIR PHILIP SAID.

HE SAID THE FACT WAS THAT THE GREATER THE VOLUME OF PUBLIC SECTOR TRANSACTIONS, THE GREATER THE SCOPE FOR PUBLIC FUNDS TO BE DISBURSED INEFFICIENTLY AND FOR ASSETS TO BE UNDERUTILISED.

THE FINANCIAL SECRETARY ALSO NOTED THAT THE TREND GROWTH RATE OF PUBLIC EXPENDITURE MUST NOT BE ALLOWED TO EXCEED THE TREND GROWTH RATE OF GDP TO SUCH AN EXTENT AND SO PERSISTENTLY THAT THE RELATIVE SIZE OF THE PUBLIC SECTOR BECAME EXCESSIVE.

HE SAID ALTHOUGH HE DID NOT REGARD THE 18.7 PER CENT IN 1979-80 AS AN ABSOLUTE LIMIT, ANY FURTHER INCREASE +MUST BE CAREFULLY WATCHED.+

SIR PHILIP POINTED OUT THAT THE ESTIMATED SURPLUS ON GENERAL REVENUE ACCOUNT WAS $2 904 MILLION AND ON CONSOLIDATED ACCOUNT, $2 649 MILLION.

+TO ENSURE THAT THE SURPLUS ON GENERAL REVENUE ACCOUNT HAS ITS FULL CONSTRAINING EFFECT ON DOMESTIC DEMAND BY THE PRIVATE SECTOR, AND HENCE ON TOTAL DOMESTIC DEMAND, THE CONSEQUENT INCREASE IN THE GOVERNMENT'S HONG KONG DOLLAR BALANCES WILL BE EITHER PLACED BY THE EXCHANGE FUND SHORT TERM, OR SWITCHED INTO FOREIGN CURRENCIES WHEN SUITABLE OPPORTUNITIES OCCUR, HE SAID.

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