XN000022-1994-02-25 — Page 3

FRIDAY, FEBRUARY 25, 1994

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MORE MONEY TO BOOST KEY SERVICES

1994/95, WHICH ARE GAZETTING OF

THE DRAFT ESTIMATES OF EXPENDITURE FOR PUBLISHED TODAY (FRIDAY) TOGETHER WITH THE

THE APPROPRIATION BILL, PROPOSE MAJOR INCREASES IN SPENDING TO EXPAND SERVICES IN AREAS WHERE THEY ARE MOST NEEDED.

THE ESTIMATES ALSO REPRESENT A FURTHER STEP TOWARDS ACHIEVING THE AMBITIOUS TARGETS SET BY THE GOVERNOR IN HIS POLICY ADDRESS IN OCTOBER 1992 AND THE FURTHER IMPROVEMENTS ANNOUNCED LAST YEAR.

TOTAL GOVERNMENT EXPENDITURE, INCLUDING EXPENDITURE FUNDS, FOR THE NEW FINANCIAL YEAR WILL RISE TO $146 BILLION.

BY THE

ANNOUNCING THIS TODAY, THE SECRETARY FOR THE TREASURY, MR DONALD TSANG, EXPLAINED THAT OF THE TOTAL OF $146 BILLION, $107.7 BILLION WOULD COVER COSTS OF PROVIDING EXISTING AND NEW SERVICES, AND $38.3 BILLION WOULD BE SPENT ON CAPITAL PROJECTS.

"THIS

BUDGETARY STRATEGY HAS BEEN DECIDED AFTER CONSULTATIONS HELD BY THE FINANCIAL SECRETARY, SIR HAMISH MACLEOD, WITH MEMBERS OF THE LEGISLATIVE COUNCIL ON SPENDING PRIORITIES DURING THE PAST YEAR.

"IT ALSO ABIDES BY OUR POLICY THAT EXPENDITURE GROWTH SHOULD NOT EXCEED THE TREND GROWTH OF THE ECONOMY, A POLICY THAT HAS SERVED US WELL OVER MANY YEARS," HE SAID.

MR TSANG EXPLAINED THAT WITH A PROJECTED TREND ECONOMIC GROWTH RATE 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 POLICY AREAS WHERE ADDITIONAL RESOURCES ARE MOST NEEDED," HE SAID.

SOME EXAMPLES ARE:

RECURRENT SPENDING ON SOCIAL WELFARE WILL INCREASE BY 8.4 PER CENT IN REAL TERMS TO $11.3 BILLION.

"SPECIAL BENEFITS INCLUDE FOR THE ELDERLY AN EXTRA 1,660 RESIDENTIAL PLACES, 24 SERVICE CENTRES AND THE ISSUE OF SENIOR CITIZEN CARDS; 650 EXTRA RESIDENTIAL PLACES FOR THE MENTALLY AND PHYSICALLY HANDICAPPED AND 1,825 ADDITIONAL PLACES IN NURSERIES, CRECHES AND SMALL GROUP HOMES FOR CHILDREN AND $100 PER MONTH INCREASE IN THE STANDARD RATE FOR CHILDREN UNDER THE COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME, MR TSANG SAID.

L

ON THE HEALTH FRONT, RECURRENT EXPENDITURE WILL GO UP BY 6.9 PER CENT IN REAL TERMS TO $17.1 BILLION IN THE NEXT FINANCIAL YEAR.

FOR

"NEW FACILITIES WILL INCLUDE 950 EXTRA HOSPITAL BEDS, AND FOUR NEW CLINICS AS WELL AS THE PROVISION OF REHABILITATION SERVICES 3,900 CHRONICALLY ILL PATIENTS AND HOSPICE CARE FOR AN ADDITIONAL PATIENTS,' HE SAID.

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/FOR EDUCATION,