XN000022-1992-03-04 — Page 12

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WEDNESDAY, MARCH 4, 1992

IN PLANNING HIS BUDGET THIS YEAR, MR MACLEOD ESTIMATED THAT THE TREND RATE OF GROWTH WOULD BE 5% FOR THE FORECAST PERIOD.

"AFTER EXAMINING OUR EXPENDITURE OBJECTIVES, PRIORITIES AND SCOPE FOR ECONOMIES, I HAVE CONCLUDED, AS I SHALL EXPLAIN LATER, THAT WE WILL BE ABLE BOTH TO PAY FOR THE AIRPORT CORE PROGRAMME AND TO FUND REAL INCREASES IN BOTH RECURRENT PROGRAMMES AND IN OTHER CAPITAL EXPENDITURE NEXT YEAR," MR MACLEOD SAID.

"I MAKE THIS

PREDICTION WITH

CONFIDENCE, GIVEN THE SOUND POLICIES AND TECHNIQUES WHICH ARE A CONSISTENT FEATURE OF OUR PUBLIC FINANCES, HE ADDED.

Γ

REASSURING THE LEGISLATIVE COUNCIL ON THE GOVERNMENT'S ABILITY TO MANAGE THE AIRPORT CORE PROGRAMME, MR MACLEOD POINTED OUT THAT THE GOVERNMENT'S SHARE OF THE COSTS OF THE CAPITAL WORKS WOULD ABSORB ABOUT 25% OF THE TOTAL CAPITAL EXPENDITURE DURING THE PERIOD UP TO 1997.

BUT THREE QUARTERS OF THE PLANNED CAPITAL EXPENDITURE OVER THE NEXT SIX YEARS WOULD BE DEVOTED TO PROJECTS OTHER THAN THE AIRPORT CORE PROGRAMME.

"MOREOVER, THE INTRODUCTION OF NEW MEASURES SUCH AS FIXED-PRICE LUMP SUM CONTRACTS AND CASH LIMITED PROVISION SHOULD GREATLY ASSIST US IN CONTROLLING COSTS," HE ADDED.

WITHIN A MONTH OR TWO, THE GOVERNMENT SHOULD BE IN A TO PUT TO FINANCE COMMITTEE FURTHER DETAILS OF THE ESTIMATED COST OF THE ENTIRE AIRPORT CORE PROGRAMME, AND OF HOW IT PROPOSED TO INDIVIDUAL PROJECTS, THE FINANCIAL SECRETARY SAID.

POSITION

FINANCE

0

➡

$14.1 BILLION SURPLUS FOR 1991-92

BUDGET

WITH

THE

THE LATEST ESTIMATE FOR 1991-92 WILL RECORD AN OVERALL

OF SURPLUS

$14.1 BILLION, EXCLUDING BORROWINGS, COMPARED ORIGINAL FORECAST OF $1.3 BILLION.

THIS WAS STATED BY THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS BUDGET FOR 1992-93 TO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

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"THIS SURPLUS IS WELCOME, AND HAS BEEN TAKEN INTO ACCOUNT IN ASSESSING

MR THE EXTENT TO WHICH WE NEED FURTHER REVENUE MEASURES, MACLEOD SAID.

OF THE SURPLUS, $8 BILLION WAS THE RESULT OF UNDERSPENDING.

A TOTAL EXPENDITURE OF $104.8 BILLION, INCLUDING EQUITY INVESTMENTS, WAS ORIGINALLY BUDGETTED FOR. BUT THE TOTAL SPENDING CAME TO ONLY $96.8 BILLION, SOME 8% LOWER.

/THE FINANCIAL