XN000022-1986-02-26 — Page 22

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WEDNESDAY, FEBRUARY 26, 1986

+SMALL+ $348M SURPLUS SEEN FOR '86-87

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A +SMALL SURPLUS+ OF $348 MILLION FOR THE 1986-87 FINANCIAL YEAR WAS FORECAST TODAY BY SIR JOHN BREMRIDGE.

PRESENTING HIS FINAL BUDGET SPEECH, SIR JOHN SAID,

+IT WOULD APPEAR THAT THE TARGET OF A BALANCED BUDGET COULD BE ACHIEVED IN 1986-87 WITHOUT FURTHER REVENUE MEASURES+.

HE SAID THAT TAKEN TOGETHER, THE DRAFT ESTIMATES OF REVENUE AND EXPENDITURE ON GENERAL REVENUE ACCOUNT IMPLIED A SMALL SURPLUS OF $388 MILLION.

+THIS IS A GREAT RELIEF AFTER FOUR DIFFICULT YEARS, HE NOTED.

NEVERTHELESS, SIR JOHN SAID SOME TAXES AND CHARGES WERE FIXED IN CASH TERMS AND WERE, THEREFORE, NON-RESPONSIVE TO INFLATION.

+IN ALL EQUITY SALARIES TAX ALLOWANCES MUST ALSO BE REVIEWED. I THUS PROPOSE A SMALL PACKAGE OF INCREASES IN TAX AND CHARGES MORE THAN OFFSET BY TAX CONCESSIONS. IT WILL COST A NET $40 MILLION IN 1986-87, + HE SAID.

+ THE ESTIMATED SURPLUS IN 1986-87 WILL CONSEQUENTLY FALL FROM $388 MILLION TO $348 MILLION, HE ADDED.

THE 1986-87 DRAFT ESTIMATES OF REVENUE AND EXPENDITURE ON GENERAL REVENUE ACCOUNT IS AS FOLLOWS:

RECURRENT

CAPITAL

TOTAL

($MN)

(NW$)

(OMN)

REVENUE (EXCL. TRANSFERS) EXPENDITURE (EXCL. TRANSFERS)

38 231

901

32 363

1 581

39 132 33 944

5 868

(680)

5 188

SURPLUS/(DEFICIT)

LESS TRANSFERS TO FUNDS (NET)

LESS COST OF REVENUE MEASURES

SURPLUS

4 8))

18

386

40

340