XN000022-1992-03-04 — Page 13

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WEDNESDAY, MARCH 4, 1992

THE FINANCIAL SECRETARY EXPLAINED THAT THE MAIN REASON FOR THIS SHORTFALL IN EXPENDITURE WAS AN UNDERSPENDING OF $5.6 BILLION ON PUBLIC WORKS.

"ONE FACTOR WAS THE INEVITABLE SLIPPAGE OF SOME PROJECTS IN THE AIRPORT CORE PROGRAMME AS A RESULT OF DELAYS IN CONCLUDING THE NEGOTIATIONS ON THE MEMORANDUM OF UNDERSTANDING LAST YEAR, LEADING TO A DEFERRAL OF SPENDING TO SUBSEQUENT YEARS.

"IN ADDITION, WE ACHIEVED SOME HELPFUL SAVINGS ON PUBLIC WORKS CONTRACTS, THANKS TO LOWER CONSTRUCTION PRICES, HE SAID.

BUOYANT REVENUES

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ALSO ACCOUNTED FOR $4.7 BILLION OF THE

SURPLUS.

A TOTAL REVENUES OF $106.1 BILLION WAS ORIGINALLY BUDGETTED FOR. IN THE EVENT, TOTAL REVENUE AMOUNTED TO $110.8 BILLION, OR ABOUT 4% MORE THAN EXPECTED.

"THE

REVENUE FROM STAMP DUTY AND LAND SALES PROVIDED THE BULK OF THE ADDITIONAL REVENUE. PRICES AT LAND AUCTIONS WERE SUBSTANTIALLY ABOVE THE ORIGINAL FORECASTS. WE ALSO BENEFITED FROM THE SALE OF TWO MAJOR SITES POSTPONED FROM THE PREVIOUS YEAR," MR MACLEOD EXPLAINED.

LAST YEAR, THE GOVERNMENT BEGAN SALES OF GOVERNMENT BONDS, WHICH HAD RAISED $1.2 BILLION FOR THE CAPITAL WORKS RESERVE FUND.

THE TOTAL CASH SURPLUS AS A RESULT WAS $15.3 BILLION, BRINGING THE FISCAL RESERVES AT THE END OF 1991-92 TO SOME $92 BILLION. THIS WOULD COVER SOME 76% OF THE TOTAL EXPENDITURE FOR NEXT YEAR.

"THIS REPRESENTS A REASONABLE CUSHION AGAINST WHATEVER MIGHT BE IN STORE FOR US, ALTHOUGH THE PROPORTION IS NOT THE IN RECENT YEARS," THE FINANCIAL SECRETARY SAID.

SHOCKS HIGHEST

TOTAL YEAR.

GOVT TO SPEND $115.1 BILLION IN 1992-93

* * *

A

FISCAL

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, HAS PROPOSED

GOVERNMENT SPENDING OF $115.1 BILLION FOR THE

1992-93

IN HIS BUDGET SPEECH DELIVERED IN THE LEGISLATIVE COUNCIL TODAY OF $13.8 (WEDNESDAY}, MR MACLEOD SAID THIS REPRESENTED AN INCREASE BILLION COMPARED WITH THE ORIGINAL ESTIMATES FOR 1991-92.

SAID

HE

THE

LEVEL OF FORECAST

GROWTH ECONOMIC GOVERNMENT'S HEALTHY FINANCIAL POSITION MADE IT POSSIBLE TO INCREASED RESOURCES

PROGRAMME AREAS FOR ALL THE GOVERNMENT'S

YEAR.

AND

THE ALLOCATE NEXT

/THE FINANCIAL