XN000022-1988-03-02 — Page 23

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WEDNESDAY, MARCH 2, 1988

ON THE GOVERNMENT'S CONSOLIDATED RESERVES, MR JACOBS SAID IT HAD RISEN FROM $40.5 BILLION AT THE END OF 1987-88 TO ABOUT $46.0 BILLION BY THE END OF 1988-89 AFTER ALLOWING FOR THE TAXATION PROPOSALS HE HAD PROPOSED TODAY.

HE SAID THE MEDIUM RANGE FORECAST SHOWED THAT MAINTENANCE OF THESE RESERVES IN REAL TERMS WOULD ВЕ ACHIEVED OVER THE FORECAST PERIOD UP TO 1991-92.

HOWEVER, HE SAID OVER THIS PERIOD THE RESERVE BALANCES WOULD FALL AS A PERCENTAGE OF ANNUAL SPENDING FROM ABOUT 77 PER CENT TO 65 PER CENT.

IN THIS RESPECT, OUR RESERVES HAVE BEEN HIGHER ONLY BRIEFLY IN THE EARLY YEARS OF THIS DECADE WHEN WE EXPERIENCED SUBSTANTIAL WINDFALL RECEIPTS FROM LAND SALES.

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MR JACOBS SAID THERE COULD BE NO ABSOLUTE SATISFACTORY LEVEL OF RESERVES.

GUIDELINE AS TO A

"NEVERTHELESS, THE PRESENT POSITION NOT ONLY PROVIDES ESSENTIAL COVER FOR OUR CONTINGENT LIABILITIES AND FOR FLUCTUATIONS IN OUR SHORT TERM CASH FLOW BUT ALSO ASSISTS US IN MAINTAINING STABILITY OVER THE LONGER TERM," HE NOTED.

FISCAL

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HIGH SPENDING ON SOCIAL SERVICES TO CONTINUE

PROPORTION SECRETARY,

SOCIAL SERVICES WILL CONTINUE TO RECEIVE A HIGHER

THE OF OUR TOTAL RESOURCES IN THE COMING YEAR,

FINANCIAL THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL THIS AFTERNOON.

IN PARTICULAR, $6.1 BILLION WOULD BE SPENT ON MEDICAL SERVICES,

TO INCREASING THE SHARE ON THE CONSOLIDATED ACCOUNT FROM 9.4 PER CENT

NEW MAJOR

PROJECTS COMING ON 9.7 PER CENT, TO SERVICE SOME OF THE STREAM.

ON SOCIAL WELFARE SERVICES, TOTAL SPENDING WAS ESTIMATED AT ΤΟ 6.3 PER $3.9 BILLION, AN INCREASE IN THE SHARE FROM 5.7 PER CENT CENT, MR JACOBS SAID.

"THIS IS PARTLY DUE TO THE IMPROVEMENTS IN WELFARE BENEFITS FOR THE ELDERLY AND FOR THE DISABLED WHO REQUIRE CONSTANT ATTENDANCE, BUT ALSO IS A RESULT OF THE EXPANSION OF VARIOUS WELFARE SERVICES, HE SAID.

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