TNAG-0618-FCO40-766-Aid-framework-from-UK-to-Hong-Kong-1977 — Page 40

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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COMMITMENTS

10.

The United Kingdom aid programme is controlled on a disbursement basis and commitments are entered into and discharged at a rate intended to give rise to the approved level of disbursments. The progress and forecasts of dis- bursements are reviewed regularly during the course of each financial year and if necessary steps are taken to control the discharge of commitments to achieve

the fullest possible disbursement of the approved programme.

11. Rates

of disbursement depend on many factors some of which are the responsibility of the recipient country and are therefore outside the control of those who

administer the United Kingdom aid programme. Fluctuations in levels of disbursement

from year to year do not therefore necessarily reflect changes of United Kingdom

policy.

PROSPECTS FOR 1977 ONWARDS

12. The planned level of the aid programme for the 1977-78 financial year is $1126m

(£623.1m) net and $1227m (£679.0m) gross. In spite of the reductions in previously planned levels the aid programme is planned to increase by 6.1% between

1977-78 and 1978-79, subject to revision in the annual expenditure survey. Because

the United Kingdom does not publish forecasts of gross national product, it

cannot make projections of performance against the United Nations target.

13.The annual White Paper on Public Expenditure indicate planned levels for the

net aid programme over a five year period as part of the planning of the public

expenditure programme as a whole. The planning figures are on a constant price

basis and are rolled forward each year by revaluation based on estimated price

changes in the year concerned for the economic categories relevant to the programme.

The United Kingdom system, therefore, has a built in adjustment for price changes

to the forward planning figures. The figures themselves are of course subject

to changes in policy. The forward planning figures for 1979-80 and 1980-81 do

not yet take account of the development which led to the reductions in planned

public expenditure announced in December 1976. They will be reviewed in the next

annual expenditure survey. It is hoped that it will be possible to restore the aid programme to, at least, the previously planned levels as soon as circumstances

permit.

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