XN000022-1989-03-01 — Page 16

10

WEDNESDAY, MARCH 1, 1989

"RECURRENT EXPENDITURE ABSORBED ONLY TWO

THUS

A COMFORTABLE

REVENUE, EXPENDITURE.

LEAVING

MARGIN

THIRDS

OF RECURRENT TO FINANCE CAPITAL

ΤΟ BE DEPENDENCY

80 ON

"THIS ENABLED ABOUT HALF OF OUR CAPITAL EXPENDITURE FINANCED, IN ACCORDANCE WITH OUR

AIM CAPITAL REVENUE.

OF LIMITING

"

HOWEVER, MR JACOBS POINTED OUT THAT WERE BECOMING EVIDENT.

SOME "DISTURBING TRENDS"

"FIRST, GROWTH IN PUBLIC SECTOR EXPENDITURE EXCEEDS THE RATE OF THE ECONOMY.

"SECONDLY, THE GROWTH IN CIVIL

HIGHER THAN OUR TARGET.

GROWTH

SERVICE ESTABLISHMENT REMAINS

REVENUE

IS BUOYANT, IT 19 ARE VULNERABLE

THE

TO

"THIRDLY, ALTHOUGH RECURRENT INCREASINGLY DEPENDENT ON DIRECT TAXES WHICH VOLATILITY OF THE ECONOMY,' HE EXPLAINED.

STEADY GROWTH WITHIN BUDGETARY GUIDELINES ESSENTIAL

+

TO THE

STEADY GROWTH WITHIN BUDGETARY GUIDELINES IS ESSENTIAL ORDERLY DEVELOPMENT AND EXPANSION OF PUBLIC SERVICES, SECRETARY, THE HON PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY THE FINANCIAL (WEDNESDAY).

FINANCES WHEN PRESENTING THIS STRATEGY WAS THE BASED ON THE TREND

SPEAKING ON THE STRATEGY FOR PUBLIC HIS BUDGET, MR JACOBS SAID THAT CENTRAL TO DISCIPLINE THAT PUBLIC EXPENDITURE SHOULD BE GROWTH RATE OF GROSS DOMESTIC PRODUCT.

"IN THIS CONNECTION, CLEARLY, THE ASSUMPTIONS MEDIUM RANGE FORECAST ARE FUNDAMENTAL,

HE SAID.

BUILT INTO THE

HE HAD, DURING THE FOR

MR JACOBS SAID FOR PLANNING PURPOSES CURRENT FINANCIAL YEAR, ADJUSTED THE TREND GROWTH RATE ASSUMPTION THE FORECAST PERIOD FROM 5.5 TO SIX PER CENT.

RAPID ECONOMIC

"RECENTLY, WE HAVE EXPERIENCED PARTICULARLY GROWTH, AND WE CAN EXPECT REASONABLE GROWTH IN THE NEXT FEW YEARS.

"I THEREFORE CONSIDER SIX PER CENT AS A TREND BE AN APPROPRIATE PLANNING ASSUMPTION,

HE SAID.

GROWTH RATE то

MR JACOBS