XN000022-1993-02-26 — Page 4

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FRIDAY, FEBRUARY 26, 1993

MORE MONEY TO BOOST KEY SERVICES

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THE DRAFT

ESTIMATES OF EXPENDITURE FOR 1993/94 WHICH ARE PUBLISHED TODAY (FRIDAY) TOGETHER WITH THE GAZETTING OF THE APPROPRIATION BILL, PROPOSE MAJOR INCREASES IN SPENDING TO EXPAND SERVICES IN AREAS WHERE THEY ARE MOST NEEDED.

THE ESTIMATES ALSO REPRESENT THE FIRST STEPS TOWARDS ACHIEVING, AND IN SOME AREAS IMPROVING ON, THE AMBITIOUS TARGETS SET BY GOVERNOR IN HIS POLICY ADDRESS IN OCTOBER LAST YEAR.

THE

TOTAL GOVERNMENT EXPENDITURE, INCLUDING EXPENDITURE FOR THE FUNDS, FOR THE NEW FINANCIAL YEAR WILL RISE TO $132. 5 BILLION, AN INCREASE OF 15 PER CENT OVER THAT PLANNED FOR THE CURRENT YEAR.

ANNOUNCING THIS TODAY, THE SECRETARY FOR THE TREASURY, MR K Y YEUNG,

EXPLAINED THAT OF THE TOTAL OF $132.5 BILLION, $99.3 BILLION WOULD COVER COSTS OF PROVIDING EXISTING AND NEW SERVICES, AND $33.2 BILLION WOULD BE SPENT ON CAPITAL PROJECTS.

"THIS BUDGETARY STRATEGY HAS BEEN DECIDED AFTER CONSULTATIONS HELD BY THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, WITH MEMBERS OF THE LEGISLATIVE COUNCIL. ON SPENDING PRIORITIES DURING THE PAST YEAR, AND WHICH CONTRIBUTED TO THE DEVELOPMENT OF THE AMBITIOUS TARGETS IN KEY PROGRAMME AREAS ANNOUNCED BY THE GOVERNOR LAST OCTOBER.

*IT

ALSO TAKES INTO ACCOUNT OUR LONG-STANDING PRINCIPLE THAT EXPENDITURE GROWTH SHOULD NOT EXCEED THE TREND GROWTH OF THE ECONOMY, A PRINCIPLE THAT HAS SERVED US WELL OVER MANY YEARS, HE SAID.

RATE

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MR YEUNG EXPLAINED THAT WITH A PROJECTED TREND ECONOMIC GROWTH OF FIVE PER CENT A YEAR, IT WAS POSSIBLE TO INCREASE RECURRENT EXPENDITURE BY AROUND FIVE PER CENT IN REAL TERMS, THAT IS OVER AND ABOVE THE RATE OF INFLATION.

**THIS MEANS SIGNIFICANT IMPROVEMENTS IN KEY PROGRAMME AREAS WHERE ADDITIONAL RESOURCES ARE MOST NEEDED, HE SAID.

**

SOME EXAMPLES ARE :

RECURRENT SPENDING ON SOCIAL WELFARE WILL INCREASE BY 7.8 PER CENT IN REAL TERMS TO $9 BILLION.

SOCIAL

"SPECIFIC BENEFITS INCLUDE THE INTRODUCTION OF A

COMPREHENSIVE

SECURITY ASSISTANCE SCHEME; AN EXTRA 1,780 RESIDENTIAL PLACES AND 27 SERVICE CENTRES FOR THE ELDERLY; 710 EXTRA RESIDENTIAL PLACES FOR THE MENTALLY AND PHYSICALLY HANDICAPPED; AND 1,860 ADDITIONAL PLACES IN NURSERIES, CRECHES AND SMALL GROUP HOMES FOR CHILDREN," YEUNG SAID.

MR

ON THE HEALTH FRONT, RECURRENT EXPENDITURE WILL GO UP BY 7.8 PER CENT IN REAL TERMS TO $14.8 BILLION IN THE NEXT FINANCIAL YEAR.

"NEW FACILITIES WILL INCLUDE 950 EXTRA HOSPITAL BEDS, AND NINE NEW CLINICS OR OTHER SERVICE UNITS," HE SAID,

/FOR EDUCATION