XN000022-1992-07-08 — Page 27

WEDNESDAY, JULY 8, 1992

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FS SEEKS LEGCO VIEWS ON EXPENDITURE PRIORITIES

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, TODAY (WEDNESDAY} CONTINUED HIS CONSULTATION WITH MEMBERS OF THE LEGISLATIVE COUNCIL ON NEXT YEAR'S BUDGET AND BRIEFED THEM ON THE MAIN FACTORS THAT NEED ΤΟ BE TAKEN INTO ACCOUNT.

FOLLOWING THIS BRIEFING, WHICH FOCUSED ON RECURRENT EXPENDITURE FOR 1993-94, MR MACLEOD WILL MEET MEMBERS IN GROUPS NEXT WEEK TO HEAR THEIR VIEWS ON PRIORITIES FOR SPENDING IN TERMS OF BROAD POLICY AREAS.

BF

"THIS WILL HELP US SET BLOCK ALLOCATIONS FOR BRANCH SECRETARIES WHO WILL, UNDER THE REVISED ARRANGEMENTS, BE GIVEN GREATER FLEXIBILITY то DEPLOY RESOURCES WITHIN AND BETWEEN THEIR PROGRAMME AREAS, MR MACLEOD SAID.

THE MAIN BUDGETARY GUIDELINE THAT EXPENDITURE GROWTH MUST BE KEPT WITHIN THE TREND GROWTH RATE OF GDP WOULD MEAN THAT PUBLIC EXPENDITURE (RECURRENT AND CAPITAL) WOULD BE ALLOWED TO INCREASE BY ABOUT $5 BILLION IN REAL TERMS OVER THE 1992-93 ESTIMATES.

"FOR RECURRENT EXPENDITURE, THE ADDITIONAL FUNDS AVAILABLE NEXT YEAR, OVER AND ABOVE WHAT WILL BE PROVIDED TO OFFSET INFLATION, ARE EXPECTED TO BE IN THE REGION OF $4 BILLION," HE SAID.

HE POINTED OUT THAT PART OF THIS EXTRA SUM HAS BEEN ΤΟ MEET IMPROVEMENTS COMING ON STREAM NEXT YEAR IN VARIOUS AREAS, SUCH AS EDUCATION, HEALTH, SOCIAL WELFARE, LAW AND ENVIRONMENT.

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"TRANSLATED INTO SERVICE TERMS, THESE WOULD MEAN SIGNIFICANT EXPANSION IN TERTIARY EDUCATION, STAFFING OF NEW SCHOOLS, HOSPITALS AND CLINICS, MORE CHILD-CARE PLACES, AND OTHER IMPROVEMENTS," HE SAID.

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MR MACLEOD SAID ON TOP OF THESE IMPROVEMENTS, FURTHER SERVICES COULD BE FUNDED FROM THE BALANCE OF THE EXTRA MONEY AND REDEPLOYMENT OF RESOURCES.

"I HOPE OUR CONSULTATION WITH MEMBERS, COUPLED WITH THE ABILITY OF SECRETARIES TO REDEPLOY WITHIN AND BETWEEN THE PROGRAMME AREAS UNDER THEIR CONTROL, WILL TAKE US A SIGNIFICANT STEP FORWARD IN DIRECTING OUR RESOURCES TO BEST SERVE THE CHANGING NEEDS OF THE COMMUNITY, HE SAID.

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MACLEOD SAID TOTAL RECURRENT EXPENDITURE HAD GROWN BY MORE THAN 32 PER CENT IN REAL TERMS OVER THE PAST FIVE YEARS, FROM 1987-88 TO 1992-93.

"THE CAKE HAS THEREFORE GOT MUCH BIGGER, THOUGH THE SHARE HAS CHANGED IN SOME CASES, REFLECTING THE SHIFT IN PRIORITIES.

"DESPITE THE CONSIDERABLE GROWTH ALLOWED, SPENDING ASPIRATIONS INEVITABLY EXCEED THE ADDITIONAL RESOURCES AVAILABLF. WE MUST SET PRIORITIES AND MAKE THE OPTIMAL USE OF OUR RESOURCES, HE ADDED.

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/R TACLEOD