XN000022-1994-04-28 — Page 6

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THURSDAY, APRIL 28, 1994

THE

CONSULTATION STARTS ON 1995 BUDGET

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FINANCIAL SECRETARY, SIR HAMISH MACLEOD, TODAY (THURSDAY) BEGAN HIS CONSULTATION WITH LEGCO MEMBERS ON NEXT YEAR'S BUDGET BY BRIEFING THEM ON THE MAIN FACTORS TO BE TAKEN INTO ACCOUNT IN DECIDING ON EXPENDITURE PRIORITIES.

THE BRIEFING WILL BE FOLLOWED BY MEETINGS WITH MEMBERS IN GROUPS IN THE SECOND AND THIRD WEEKS OF MAY TO HEAR THEIR VIEWS ON THE AREAS то BE ACCORDED PRIORITY FOR BOTH RECURRENT AND CAPITAL EXPENDITURE IN PREPARATION OF THE 1995/96 ESTIMATES.

SIR HAMISH NOTED THAT CONSULTATION WITH MEMBERS HAD CONTRIBUTED TO THE SUCCESS OF THE 1994 BUDGET AND HE WAS GRATEFUL FOR MEMBERS' SUPPORT IN THE BUDGET DEBATE.

HE SAID THE TIMING OF THIS YEAR'S CONSULTATION HAD BEEN BROUGHT FORWARD SLIGHTLY SO THAT MEMBERS' VIEWS COULD BE TAKEN INTO 'CONSIDERATION AS EARLY AS POSSIBLE IN THE RESOURCE ALLOCATION EXERCISE.

EXPENDITURE WHICH WAS

IN DRAWING UP NEXT YEAR'S BUDGET, HE

SAID, THE GOVERNMENT REMAINED COMMITTED TO THE MAIN BUDGETARY GUIDELINE THAT GROWTH MUST BE KEPT WITHIN THE TREND GROWTH RATE OF GDP, PROVISIONALLY FORECAST TO BE FIVE PER CENT.

"THIS MEANS THAT RECURRENT EXPENDITURE IN 1995/96 IS EXPECTED TO INCREASE BY ROUGHLY $5 BILLION IN REAL TERMS, HE SAID.

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HOWEVER, HE NOTED THAT A SUBSTANTIAL PART OF THIS SUM HAD ALREADY BEEN EARMARKED TO MEET THE FULL-YEAR COST OF INITIATIVES STARTED IN 1994/95 AND THE RECURRENT CONSEQUENCES OF CAPITAL PROJECTS COMING ON STREAM.

IT ALSO HAD TO BE USED TO MEET STATUTORY AND CONTRACTUAL GROWTH SUCH AS SOCIAL SECURITY PAYMENTS, STUDENT GRANTS AND CIVIL SERVICE PENSIONS AS WELL AS FURTHER SERVICE IMPROVEMENTS IN 1995/96 TOWARDS MEETING THE 1997 TARGETS ANNOUNCED BY THE GOVERNOR IN HIS 1992 AND

1993 POLICY ADDRESSES.

"FOR EXAMPLE, MONEY HAS ALREADY BEEN EARMARKED FOR MORE CARE AND ATTENTION PLACES FOR THE ELDERLY, MORE HOME HELP TEAMS, EXTRA CHILD CARE PLACES, EXPANSION IN FACILITIES FOR THE DISABLED AND SCHOOL SOCIAL WORKERS.

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"FUNDS HAVE ALSO BEEN SET ASIDE FOR MORE TEACHERS, MORE HOSPITAL BEDS,

NEW CLINICS AND HEALTH CENTRES, AND CLEANING COUNTRYSIDE, HE SAID.

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HE ADDED THAT ON TOP OF THESE IMPROVEMENTS, FURTHER NEW SERVICES COULD BE FUNDED BY THE BALANCE OF THE NEW MONEY AND REDEPLOYMENT OF RESOURCES AND BETTER RESOURCE MANAGEMENT.

/HE HOPED