XN000022-1987-10-07 — Page 29

14

WEDNESDAY, OCTOBER 7, 1987

NEVERTHELESS, THERE WAS SOME SCOPE FOR EXPANDING PUBLIC TO NEW NEEDS. "THESE WILL BE WITHIN THE SERVICES AND RESPONDING

SERVICE CONSTRAINT THAT WE SHALL TRY TO LIMIT THE GROWTH OF THE CIVIL TO NOT MORE THAN 2.5 PER CENT IN ANY ONE YEAR."

SIR DAVID ALSO SAID THAT THE LOW TAX PHILOSOPHY WOULD CONTINUE, PUBLIC FINANCES THE GOVERNMENT AND COMMENTED THAT IN MANAGING THE TRIED ESSENTIALLY TO ACT LIKE A PRUDENT HOUSEKEEPER.

"IT 19 QUITE RIGHTLY AN ARTICLE OF FAITH THAT WE SHOULD

IN WAYS THAT

ARE

SEEK

REVENUE то RAISE

EFFICIENT AND WHICH ECONOMY BY BLUNTING THE DO NOT ACT AS A BRAKE ON THE GROWTH OF THE

ON WHICH INCENTIVES TO EFFORT, ENTERPRISE, INVESTMENT AND INNOVATION ECONOMIC GROWTH ESSENTIALLY DEPENDS.

THAT RELATIVELY MODEST

EXPERIENCE "HONG KONG HAS LEARNED BY LEVELS OF TAXATION, WHICH ARE CAPABLE OF BEING COLLECTED, PRODUCE MORE

HIGHER AND MORE ONEROUS RATES REVENUE IN THE LONG RUN THAN

THEY GIVE ENCOURAGEMENT TO ECONOMIC EXPANSION."

GOVERNMENT

ΤΟ AIMED

SINCE

ENSURE

THAT OF THE FAR AS

ON THE SPENDING SIDE, THE PUBLIC SPENDING DID NOT EXCEED A REASONABLE AND PRUDENT SHARE PRODUCT AND THAT ITS GROWTH SHOULD, AS GROSS DOMESTIC POSSIBLE, NOT EXCEED THE OROWTH OF THE GDP.

"THIS MEANS THAT, IN ORDER ΤΟ MAINTAIN AND DEVELOP IT IS NECESSARY IN PROGRAMMES AND SERVICES IN DIFFICULT YEARS,

TO RUN SURPLUSES AND TO GOOD YEARS OF RAPID ECONOMIC GROWTH MONEY ASIDE.

OUR

THE

PUT

YEARS

"THIS LESSON WAS BROUGHT HOME SHARPLY DURING THE DEFICIT

OUR RESERVES ΤΟ MAINTAIN FROM 1982 TO 1985, WHEN WE HAD TO CALL ON THE EXISTING LEVEL OF SERVICES."

SIR DAVID ALSO SAID THAT A

TO IMPROVE BEING INTRODUCED PLANNING,

THE

"RESOURCE

LONG-TERM GOVERNMENT'S

ALLOCATION SYSTEM" WAS FINANCIAL

"OUR

ARRANGEMENTS PRESENT

SUFFER FROM NOT

BEING ABLE

ΤΟ

AND, PROVIDE US WITH A MEANS OF MONITORING PERFORMANCE AGAINST DEMAND

NOT ENABLING MORE

US IMPORTANTLY,

то RESPOND MORE FLEXIBLY ΤΟ

HE SAID, CHANGING ECONOMIC AND SOCIAL DEVELOPMENTS,"

METHODS 30 THAT WE IN FUTURE

"THE NEW SYSTEM WILL IMPROVE FORECASTING CAN PREDICT MORE ACCURATELY THE SIZE OF OUR FINANCIAL CAKE YEARS AND THEN HAVE THE ABILITY TO PLAN RATIONALLY HOW SHARED OUT BETWEEN COMPETING GOVERNMENT SERVICES.

IT SHOULD BE

ENABLE US "WHEN IT IS OPERATING FULLY, THIS NEW SYSTEM SHOULD

ACROSS THE TO PLAN AND MONITOR MORE EFFICIENTLY THE USE OF RESOURCES

RESOURCES IN 1 WHOLE SPECTRUM OF GOVERNMENT ACTIVITIES; TO ALLOCATE

AND MORE FLEXIBLE WAY; TO ASSESS HOW EFFECTIVELY THEY ARE BEING USED;

MAKR BETTER THEN TO

DECISIONS ON THE DIFFICULT CHOICES BETWEEN COMPETING PRIORITIES.

P

/TURNING TO