XN000022-1988-10-12 — Page 25

WEDNESDAY, OCTOBER 12, 1988

13

APPROACH ON MANAGEMENT OF PUBLIC FINANCES OUTLINED

* * * *

PUBLIC FINANCES IS

THE GOVERNMENT'S MAIN AIM IN MANAGING THE TO ENSURE THAT THE GROWTH OF PUBLIC EXPENDITURE DOES NOT OUTSTRIP UNDERLYING GROWTH RATE OF THE ECONOMY AS A WHOLE, ABOUT SIX PER CENT A YEAR.

THE

WHICH IS CURRENTLY

IN THE LEGISLATIVE THE GOVERNOR, SIR DAVID WILSON, SAID THIS

ARRAS IN WHICH COUNCIL TODAY (WEDNESDAY) AS HE OUTLINED A NUMBER OF

SERVICES IN THE COMING THE GOVERNMENT PLANNED TO EXPAND OR IMPROVE YEAR, WITHIN THE PARAMETERS PROVIDED BY THE UNDERLYING GROWTH RATE.

MUST BE

THE ABILITY OF GROWTH ON WHICH

HE SAID THAT IN EXPANDING ITS SERVICES THE GOVERNMENT CAREFUL THAT PUBLIC SECTOR DEMANDS DID NOT UNDERMINE THE PRIVATE SECTOR TO GENERATE KONG'S PROSPERITY DEPENDED.

THE ECONOMIC

HONG

"OUR ECONOMY IS NOW RUNNING VERY CLOSE TO FULL GOVERNOR SAID.

CAPACITY,"

THE

||

A WAY WHICH IN EXPANDING PUBLIC SERVICES WE MUST NOT ACT IN ACCELERATES INFLATION OR PUTS FURTHER PRESSURES ON THE LABOUR MARKET.

"THIS MEANS THAT PUBLIC SECTOR GROWTH MUST BE BOTH GRADUAL

RESTRAINED."

AND

HAVE TO IN THE NEXT FEW YEARS, SIR DAVID SAID MUCH MORE WOULD

TRANSPORT, ECONOMIC AND BE SPENT ON IMPROVEMENTS TO THE TERRITORY'S ENVIRONMENTAL INFRASTRUCTURE THAN IN THE PAST.

"THIS EXPENDITURE HAS

то BE

CAREFULLY PLANNED

BACKGROUND OF OTHER IMPORTANT AND CONTINUING CAPITAL SAID.

**WE

TO HAVE

ADJUST OUR

PRIORITIES

INCREASING CAPITAL BUDGET IN SUCH A WAY THAT MATCHES THE DEVELOPING NEEDS OF THE COMMUNITY. DIFFICULT CHOICES."

AGAINST THE PROGRAMMES, HE

+

WITHIN A GRADUALLY THE OVERALL PROGRAMME INEVITABLY THIS MEANS

IT WAS EQUALLY IMPORTANT THE GOVERNOR ALSO POINTED OUT THAT THAT THE PRIVATE SECTOR WOULD NOT BE CROWDED OUT OF THE LABOUR MARKET.

HE NOTED THAT THE NUMBER OF CIVIL SERVANTS HAD GROWN, PAST FIVE YEARS, BY AN ANNUAL AVERAGE OF 1.7 PER CENT.

OVER THE

ALTHOUGH THIS