XN000022-1989-05-10 — Page 3

WEDNESDAY, MAY 10, 1989

LOWER EXPENDITURE WILL BOOST 88-89 SURPLUS

THE GOVERNMENT EXPECTS TO HAVE A CONSOLIDATED SURPLUS OF $15.7 BILLION FOR 1988-89 COMPARED WITH THE REVISED ESTIMATE OF $14.2 FIGURES OF BILLION GIVEN IN THE BUDGET SPEECH AS PROVISIONAL OUTTURN THE GOVERNMENT'S ACCOUNTS

INDICATED A LOWER EXPENDITURE HIGHER REVENUE RECEIPTS IN SOME AREAS.

HAVE

AND

THE FINANCIAL SECRETARY. THE HON PIERS JACOBS, TOLD

RESUMED DEBATE LEGISLATIVE COUNCIL THIS TODAY (WEDNESDAY IN THE THE BUDGET.

THE ON

MR

THE GOVERNMENT'S ACCOUNTS WOULD NOT BE WEEKS

JACOBS POINTED OUT THAT EXPENDITURE ON THAN THE REVISED

THAT GENERAL EXPENDITURE

YET, INDICATED

THAT WHILE NOTING FINALLY CLOSED FOR SOME PROVISIONAL OUTTURN FIGURES REVENUE ACCOUNT WOULD BE SOMEWHAT LESS ESTIMATES TABLED IN THE BUDGET SPEECH.

"ALTHOUGH UNDERSPENDING HAS BEEN IDENTIFIED IN ALL COMPONENTS OF EXPENDITURE THERE ARE NO PARTICULARLY NOTEWORTHY ITEMS.

"THE RESULT IS THAT

THE

PROVISIONAL EXPENDITURE OUTTURN IS

ABOUT ONE PER CENT LESS THAN THE REVISED ESTIMATE,' HE SAID.

HE SAID THE PROVISIONAL OUTTURN FOR REVENUE INDICATED THAT RECEIPTS FROM PROFITS TAX, STAMP DUTY AND MOTOR VEHICLES TAX WOULD

ESTIMATE, ALTHOUGH THE EXCEED THE REVISED

TOTAL FIGURE WOULD BE

WITHIN ONE PER CENT OF THE REVISED ESTIMATE.

THE CAPITAL

WORKS

RESERVE 30.4 BILLION

DELAYS

FUND

AND

LESS

IN

LAND

HOUSING

LOAN

ALSO, EXPENDITURE FROM DEVELOPMENT LOAN FUND WAS NOW LIKELY TO BE ABOUT

THE

ESTIMATE, REVISED

MAINLY

OF BECAUSE ACQUISITION PAYMENTS AND A LOWER THAN EXPECTED LEVEL OF ADVANCES TO CIVIL SERVANTS.

THAN

BUT REVENUE TO THE FUNDS WOULD BE AS IN THE REVISED ESTIMATE, MR JACOBS SAID,

THE

1989-90

HE SAID THESE ADJUSTMENTS WOULD NOT AFFECT ESTIMATES OR THE ASSUMPTIONS HE HAD MADE IN THE MEDIUM RANGE FORECAST.

"THE FURTHER INCREASE IN RECEIPTS FROM PROFITS DUTY IS A DIRECT CONSEQUENCE OF THE CONTINUING STRONG OUR ECONOMY.

TAX AND STAMP PERFORMANCE OF

ΤΟ BE

"IT ALSO EMPHASISES THE FACT THAT OUR REVENUE CONTINUES

ARE HIGHLY SUSCEPTIBLE INCREASINGLY DEPENDENT ON DIRECT TAXES WHICH TO FLUCTUATIONS IN ECONOMIC PERFORMANCE, HE SAID.

MR JACOBS SAID THIS TREND NEEDED TO CONSIDERING ANY PROPOSALS FOR BROADENING THE THE SCOPE OF INDIRECT TAXATION.

BE BORNE IN MIND

WHEN

TAX BASE AND WIDENING

/ON THE