XN000022-1988-03-02 — Page 27

17

WEDNESDAY, MARCH 2, 1988

TAKING THE DRAFT ESTIMATES OF REVENUE AND EXPENDITURE FOR 1988- NET SURPLUS ON GENERAL REVENUE 89 TOGETHER, HE SAID THEY SHOWED A ACCOUNT OF 95.6 BILLION AND AN INCREASE IN THE BALANCES OF OF $1.7 BILLION.

THE FUNDS

"IN TOTAL, THEREFORE, A POTENTIAL OVERALL SURPLUS FOR THE OF $7.3 BILLION IS INDICATED.

D

SCOPE

FOR SOME REDUCTION

YEAR

IN

MR JACOBS NOTED THAT THERE WAS TAXATION. "IN FORMULATING MY PROPOSALS, I HAVE LOOKED BEYOND 1988-89."

THAT

IT WOULD TAKE

TIMB BEFORE THE SLOWER HE EMPHASISED ECONOMIC GROWTH THAT HE HAD FORECAST WOULD AFFECT THE REVENUE YIELDS.

THE FULL IMPACT ON REVENUE YIELDS OF ANY TAX CONCESSIONS

NOT BE FELT UNTIL 1989-90, HE ADDED.

WOULD

PROPOSING A PACKAGE $1.8 BILLION IN

"WITH THESE CONSIDERATIONS IN MIND, I AM OF MEASURES WHICH WILL REDUCE OUR REVENUE YIELDS BY 1988-89, BUT MORE IMPORTANTLY, BY $2.7 BILLION IN A FULL YEAR,

THE FULL YEAR COST WAS EQUIVALENT TO ABOUT RECURRENT REVENUE YIELDS, HE SAID.

[

FIVE PER CENT OF

THEREFORE,

REDUCE THE ACCOUNT FROM $5.6 WHEN TAKEN TOGETHER

"IN 1988-89, THESE PROPOSALS WILL,

REVENUE ESTIMATED OVERALL

ON GENERAL SURPLUS BILLION TO $3.8 BILLION AND THE OVERALL SURPLUS, WITH OUR FUNDS, FROM $7.3 BILLION TO $5.5 BILLION," HE SAID.

IMPACT

ON

THE

RATIO

HAVE

BEEN 61

BETWEEN IN TERMS OF THEIR INDIRECT TAXES, MR JACOBS SAID HIS PROPOSALS WOULD REDUCE

PER ELEMENT IN 1988-89 FROM WHAT WOULD REVENUE TO 60 PER CENT.

DIRECT THE DIRECT CENT OF TAX

AND

WHICH I HAVE REFERRED, MY PROPOSALS ARE

TENDENCY FOR THE WHAT IS A INCREASE AS A SHARE OF THE WHOLE,

TO "PENDING THE FURTHER CONSIDERATION OF NEW INDIRECT SOURCES,

INTENDED MERELY TO CONTAIN DIRECT SOURCES TO NATURALLY BUOYANT

MR JACOBS SAID.

REVENUE-RAISING MEASURES TO YIELD $390 MILLION

THE FINANCIAL

SECRETARY,

THE

PIERS HON

JACOBS, TODAY MEASURES DESIGNED

(WEDNESDAY) PRESENTED A PACKAGE OF REVENUE-RAISING TO YIELD $390 MILLION IN 1988-89.

WOULD BE MORE

REVENUE THE ADDITIONAL CONCESSIONS ESTIMATED TO COST $2.2 BILLION IN 1988-89.

THAN

OFFSET

BY TAX

/INCLUDED IN