XN000022-1987-02-25 — Page 13

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WEDNESDAY, FEBRUARY 25, 1987

EXPENDITURE TO TOTAL $44.4 BILLION

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TOTAL EXPENDITURE OR GENERÁL REVENUE ACCOUNT FOR THE COMING FINANCIAL YEAR WILL AMOUNT TO $44.4 BILLION,

GIVING THE FIGURE IN MIS BUDGET SPEECH TODAY (WEDNESDAY),

THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, SAID HIS ESTIMATES FOR 1987-88 ACCOMMODATED AN OVERALL EXPENDITURE GROWTH RATE OF 4.9 PER CENT IN REAL TERMS, WHICH WAS JUST UNDER 1 PER CENT MORE THAN FOR 1986-87.

+IF WE ARE TO MAINTAIN A SATISFACTORY BUDGETARY POSITION, WE MUST CURTAIN EXPENDITURE GROWTH TO WITHIN THE PLANNING ASSUMPTION OF A 5.3 PER CENT AVERAGE ANNUAL GROWTH RATE IN THE EG HE SAID.

+1 AIM TO HOLS PUBLIC EXPENDITURE, À LITTLE BELOW THIS FIGURE IN ORDER TO ALLOW ROOM FOR UNFORESEEN EVENTS, HE ADDED.

IN SETTING THE LIMITS TO PUBLİC EXPENDITURE, MR JACOBS SÁID ME MUST HAVE REGARD TO À PENT UP DEMAND FOR SERVİCES FOLLOWING A PERIOD OF RESTRAINT.

+BUT { BO NOT 'BELIEVE THAT EXPENDITURE SHOULD BE ALLOWED TO RISE AUTOMATICALLY.

+IT REMAINS VITAL THAT ALL NEW EXPENDITURE PROPOSALS BE JUDGED ON THEIR MERITS.

MR JACOBS CONSIDERED İT ESSENTIAL THAT ANY GROWTH SHOULD BE RELATED TO CLEAR AND ESTABLISHED POLICY OBJECTIVES RATHER THAN BEING BROUGHT ABOUT BY A GENERAL SLACKENING OF CONTROL.

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*WITH THE NEED FOR CONTROL FIRMLY, IN MIND. Í GET GUIDELINES FOR DEPARTMENTS LAST AUTUMN FOLLOWING À CRITICAL EXAMINATION OF THEIR EXISTING ACTIVITIES, HE SAID.

+1 ALSO TOOK INTO ACCOUNT THE NEED FOR SERVICING NEW FACILITIES AND FOR A RESPONSE TO NATURAL GROWTH. +

Á PROVISION OF $180 MILLION, ÉQUIVALENT TO $270 MILLION IN A FULL YEAR, HAD BEEN ACCOMMODATES" IN THE BUDGET TO FINANCE THE RECURRENT COST OF NEW OR IMPROVED SERVICES.

IN TERMS OF STAFFING, MEDICAL SERVICES ALONE ACCOUNTED FOR ABOUT A QUARTER OF THE INCREASE REQUIRED IN 1987–00 AND SOCIAL WELFARE SERVICES ACCOUNTED FOR ANOTHER & PER CENT OF THE STAFF INCREASE.

+OVERÁLL, CIVIL SERVICE GROWTH IS EXPECTED TO BE JUST OVER 3 PER CENT IN 1987-88,+ MR JACOBS BAID.

/+THIS IS .****