XN000022-1981-02-25 — Page 9

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25 PER CENT RISE IN GOVT SPENDING TIPPED

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GOVERNMENT EXPENDITURE FOR 1981-82 IS ESTIMATED TO INCREASE BY 25 PER CENT TO $24 643 MILLION AFTER ADJUSTMENTS TO THE CAPITAL ACCOUNT, THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE SAID IN HIS BUDGET SPEECH TODAY,

THE RECURRENT EXPENDITURE IS ESTIMATED AT $15 188 MILLION,

UP 27 PER CENT COMPARED WITH THAT FOR 1980-81.

PERSONAL EMOLUMENTS AT $5 271 MILLION ACCOUNT FOR 36 PER CENT OF THE RECURRENT EXPENDITURE. OF THIS $493 MILLION IS FOR SOME 17 600 POSTS WHICH MIGHT BE CREATED DURING THE FINANCIAL YEAR. THE PROVISION SOUGHT DOES NOT ALLOW FOR THE COST OF ANY REVISION OF CIVIL SERVICE SALARIES IN 1981-82.

OTHER ITEMS WHICH FEATURE PROMINENTLY ON THE RECURRENT EXPENDITURE INCLUDE PUBLIC WORKS AT $891 MILLION WHICH ACCOUNTS FOR 6.1 PER CENT, DEFENCE AT $1 375 MILLION (9.4 PER CENT) AND SUBVENTIONS AND U.P.G.C. AT $3 525 MILLION (24.2 PER CENT).

TAKING RECURRENT AND CAPITAL SUBVENTIONS TOGETHER, SIR PHILIP SAID, NO LESS THAN $3 958 MILLION, OR 17 PER CENT OF TOTAL EXPENDITURE ON GENERAL REVENUE ACCOUNT, WILL BE DISBURSED BY SUBVENTED ORGANISATIONS. EXPENDITURE BY THESE ORGANISATIONS FINANCED FROM THE GENERAL REVENUE WILL BE NO LESS THAN 10 PER CENT UP ON THE REVISED ESTIMATE FOR 1980-81 OF $3 590 MILLION WHICH IS UP BY 39 PER CENT ON ACTUAL EXPENDITURE IN 1979-80.

ON THE PATTERN OF EXPENDITURE, SIR PHILIP SAID THE GENERAL SERVICES WILL ABSORB 16.9 PER CENT OF TOTAL EXPENDITURE ECONOMIC SERVICES 7.7 PER CENT COMMUNITY SERVICES 22.5 PER CENT AND SOCIAL SERVICES 42.1 PER CENT.

SIR PHILIP POINTED OUT THERE WAS A RECURRENT MISCELLANEOUS COMPONENT OF $1 364 MILLION OF WHICH $600 MILLION WAS BEING SOUGHT FOR UNQUANTIFIABLE, BUT LIKELY, COMMITMENTS AND FOR COMMITMENTS UNFORESEEN WHEN THE ESTIMATES WENT TO PRINT.

+SOME OF THESE HAVE BEEN KNOWN TO FINANCE BRANCH RECENTLY, INCLUDING A REVISION OF THE SCHEMES FOR GRANTS AND LOANS TO POST SECONDARY STUDENTS, A REVISION OF THE SCHEME FOR SUBSIDISING STUDENTS TRAVELLING ON PUBLIC TRANSPORT, A POSSIBLE SCHEME OF ASSISTANCE FOR STUDENTS FROM HONG KONG UNDERTAKING COURSES OF STUDY LEADING TO A FIRST DEGREE/DIPLOMA IN THE UNITED KINGDOM, THE COST OF BACK-PAYMENTS INTO APPROVED PROVIDENT FUNDS FOR STAFF EMPLOYED BY SUBVENTED ORGANISATIONS, THE COST OF THE 1981-82 KEEP HONG KONG CLEAN CAMPAIGN, ANY INCREASED EXPENDITURE WHICH MAY BE APPROVED BY FINANCE COMMITTEE UNDER VARIOUS VOTES AS THE DISTRICT ADVISORY BOARDS ARE FORMED AND START OPERATING, AND THE COST OF IMPROVEMENTS TO CERTAIN FACILITIES FOR THE CARE OF HAND ICAPPED CHILDREN.+

HE ADDED THAT $280 MILLION HAD ALSO BEEN SET ASIDE FOR AN EX-GRATIA ONE-OFF GRANT TO THE URBAN COUNCIL TO MEET AN ANTICIPATED DEFICIT IN ITS ACCOUNTS IN 1981-82, THIS GRANT BEING IN LIEU OF AN INCREASE IN THE URBAN COUNCIL RATE.

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