XN000022-1985-03-27 — Page 6

اليا

WEDNESDAY, MARCH 27, 1985

SHE SAID THAT DESPITE THE TAX INCREASES IN THE 1983 AND 1984 BUDGETS, RECURRENT EXPENDITURE HAD SINCE 1981-82 BEEN GROWING MUCH FASTER THAN RECURRENT REVENUE, WITH THE RESULT THAT THE SURPLUS ON RECURRENT ACCOUNT HAD SHRUNK FROM $7.7 BILLION IN 1981-82 TO $4 BILLION IN 1984-85.

+BUT FOR THE NEW REVENUE PROPOSALS FOR THE COMING YEAR,

IT WOULD SHRINK FURTHER, SHE SAID.

STRESSING THE NEED FOR A SURPLUS ON RECURRENT ACCOUNT MISS DUNN THEN ASKED THE QUESTION AS TO HOW A SUFFICIENT RECURRENT SURPLUS COULD BE OBTAINED.

+ I BELIEVE WE CANNOT AFFORD TO GO ON INCREASING TAXES EVERY YEAR TO DO IT BUT I FEAR THAT THIS IS WHAT THE FINANCIAL SECRETARY MIGHT HAVE IN MIND+, SHE SAID.

SHE SAID SHE DID NOT NECESSARILY OPPOSE THE TAX MEASURES PROPOSED IN THIS BUDGET BUT BELIEVED THAT THE MAINTENANCE OF A LOW TAX ENVIRONMENT WAS OF THE UTMOST IMPORTANCE.

+AS I SAID LAST YEAR, WE SHOULD GET BACK TO CUTTING OUR COAT ACCORDING TO OUR CLOTH.

+ IN OTHER WORDS, THE BUDGET SHOULD BE REVENUE-BASED AS IT USED TO BE, NOT EXPENDITURE-BASED, AND THE RESERVES SHOULD RETURN TO THEIR CLASSIC ROLE, THAT IS, TO MEET UNFORESEEN DEFICITS, SHE SAID.

MISS DUNN SAID THAT NO PROJECT WAS SACROSANCT JUST BECAUSE IT ONCE GOT INTO THE PUBLIC WORKS PROGRAMME NOR WAS IT ABSOLUTELY ESSENTIAL THAT IT SHOULD GO AHEAD THIS YEAR RATHER THAN NEXT YEAR OR EVEN LATER.

+ IF AN EXPENDITURE-BASED BUDGET WILL BALANCE IN 1986-87, FINE.

→IF NOT, NEW REVENUE MEASURES ARE NOT INEVITABLE, THERE IS AN ALTERNATIVE, MISS DUNN STRESSED.

SHE SAID THE REASON WHY ALL THIS WAS SO SPECULATIVE WAS THAT THE FINANCIAL SECRETARY HAD FAILED AGAIN TO PROVIDE FIGURES FOR THE FORECAST PERIOD.

SUMMING UP, MISS DUNN SAID THAT THE BUDGET STATEMENT AND RELATED DOCUMENTS WERE NEITHER SELF-EXPLANATORY NOR SELF- CONTAINED AND THE FINANCIAL SECRETARY HAD GIVEN NO PROJECTIONS EVEN FOR 1986-87.

SHE ADDED THAT SHE HOPED THE FINANCIAL SECRETARY WOULD ACCEPT THAT IT WAS DIFFICULT TO TAKE A DEFINITIVE VIEW OF THE APPROPRIATION BILL 1985 AS SUCH IN THE ABSENCE OF ANSWERS TO THESE QUESTIONS:

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