XN000022-1985-02-27 — Page 13

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WEDNESDAY, FEBRUARY 27, 1985

GENERAL REVENUE EXPENDITURE HELD TO $29.4 BILLION

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AFTER MUCH HARD BARGAINING, JUST OVER $29.4 BILLION HAS BEEN PROVIDED FOR GENERAL REVENUE ACCOUNT EXPENDITURE FOR 1985-86, SAID SIR JOHN, EXCLUDING ADDITIONAL COMMITMENTS AND TRANSFERS TO FUNDS SUCH AS THE CAPITAL WORKS RESERVE FUND.

THE ORIGINAL LIMIT SET IN NOVEMBER LAST YEAR WAS $29.8 BILLION, HE SAID, REPRESENTING AN INCREASE OF NO MORE THAN ABOUT 7.7 PER CENT ON THE CURRENT YEAR'S OUTTURN.

+AS REAL GROWTH IN THE EDUCATION, MEDICAL AND SOCIAL WELFARE SECTORS HAD TO BE INCLUDED, AND AS ADDITIONAL RESOURCES HAD TO BE PROVIDED FOR THE DISCIPLINED SERVICES, THIS MEANT VIRTUALLY NO PROSPECT OF GROWTH FOR THE MAJORITY OF DEPARTMENTS. INDEED IN SOME CASES THERE HAD TO BE REDUCTIONS,

+ IN THE EVENT AFTER MUCH HARD BARGAINING THE PRINTED DRAFT ESTIMATES THAT EMERGED PROVIDE JUST OVER $29.4 BILLION, ($28 BILLION RECURRENT EXPENDITURE, PLUS $1.4 BILLION CAPITAL EXPENDITURE), AN INCREASE OF 6.3 PER CENT. THIS AND SOME LATER PERCENTAGE COMPARISONS WITH EXPENDITURE IN

1984-85 DO NOT INCLUDE THE EFFECTS OF ANY CIVIL SERVICE SALARY INCREASE THAT MAY BE AGREED FOR 1985-86.+

+THERE MUST BE ADDED A CONTINGENCY ALLOWANCE OF $1.8 BILLION FOR ALL ADDITIONAL COMMITMENTS PLUS $7.2 BILLION FOR TRANSFERS TO FUNDS, SAID SIR JOHN.

THE TOTAL IS THUS $38.4 BILLION, MADE UP OF $28 BILLION IN CURRENT EXPENDITURE, $1.4 BILLION IN CAPITAL EXPENDITURE, $1.8 BILLION IN ADDITIONAL COMMITMENTS AND $7.2 BILLION IN TRANSFERS TO FUNDS.

FURTHER DEFICIT REDUCTION SEEN

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IT SHOULD BE POSSIBLE TO FURTHER REDUCE THE DEFICIT FOR THE COMING FINANCIAL YEAR BEFORE SEEKING A BALANCED BUDGET IN 1986-87, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY (WEDNESDAY).

PRESENTING HIS BUDGET PROPOSALS IN THE LEGISLATIVE COUNCIL, SIR JOHN SAID THAT THE STRATEGY OF A CALM, STEADY BUT ABOVE ALL PLANNED APPROACH TOWARDS REDUCING THE DEFICIT WOULD CONTINUE.

+THERE CAN BE GROWING CONFIDENCE THAT THE DESIRED RESULTS ARE MATERIALISING. CLOSE MONITORING OF OUR PERFORMANCE WITH THE HELP OF A FINANCIAL MODEL COUPLED WITH THE LATEST INFORMATION AVAILABLE INDICATES THAT WE REMAIN ON COURSE, SIR JOHN SAID.

DESPITE THE