FIRST,
SECRET
PROGRESSIVELY, AND TO THE MAXIMUM EXTENT THAT THE
ECONOMY WILL PERMIT, TO IMPLEMENT APPROVED GOVERNMENT POLICIES AND PROGRAMMES IN SUCH A WAY AS TO SECURE THE PUBLIC INTEREST:
SECONDLY, TO ENSURE THAT REVENUE IS RAISED AS EQUITABLY AS POSSIBLE AS BETWEEN PARTICULAR CLASSES AND GROUPS OF TAXPAYERS OR
POTENTIAL TAXPAYERS:
THIRDLY,
TO MINIMISE ANY ADVERSE EFFECTS OF PUBLIC EXPENDITURE
AND OF THE FISCAL SYSTEM ON THE INTERNAL COST/PRICE STRUCTURE OF
THE ECONOMY AND PRIVATE INVESTMENT DECISIONS SO THAT THE GROWTH
RATE OF THE G.D.P. IS NOT CONSTRAINED OR BUSINESS CONFIDENCE
DAMAGED.
92. TO HELP IN ACHIEVING THESE OBJECTIVES IT IS NECESSARY TO LAY
DOWN CERTAIN GUIDELINES. BUT, AS I SAID LAST YEAR, NOME OF THESE GUIDELINES IS ABSOLUTE AND THEY ARE NO SUBSTITUTE FOR COMMON-SENSE, ACCEPTANCE OF ECONOMIC REALITY, RECOGNITION OF SOCIAL NEEDS, IMAGINATIVE DECISION-MAKING AND A CONTINUING EMPHASIS ON COST-
EFFECTIVENESS AND COST-EFFICIENCY. SO MY GUIDELINES ARE SIMPLY
INTENDED TO IMPOSE A DEGREE OF DISCIPLINE AND TO REMIND US OF THE CONSEQUENCES OF PARTICULAR COURSES OF ACTION. THOUGH EACH
IS GROUNDED IN HISTORICAL EXPERIENCE, THERE IS NOTHING SACROSANCT ABOUT THEM AND THEY HAVE FREQUENTLY BEEN BREACHED UNDER PRESSURE
OF EVENTS.
93. FIRST, THE RELATIONSHIP BETWEEN THE RECURRENT AND CAPITAL ACCOUNTS MUST BE DEFINED IN SUCH A WAY AS TO LIMIT THE RATE AT
WHICH OUR RECURRENT COMMITMENTS GROW IN RELATION TO RECURRENT
REVENUE, THUS I HAVE TAKEN THE VIEW THAT RECURRENT EXPENDITURE SHOULD ABSORB NO MORE THAN 80% OF RECURRENT REVENUE AND THAT AT LEAST 6C OF CAPITAL EXPENDITURE SHOULD SE FINANCED BY THE SURPLUS ON RECURRENT ACCOUNT. THIS SETS AN UPPER LIMIT TO RECURRENT EXPENDITURE, BUT NOT TO CAPITAL EXPENDITURE BECAUSE, IF LESS THAN 80% OF RECURRENT REVENUE IS ABSORBED BY RECURRENT EXPENDITURE, THE SURPLUS ON RECURRENT EXPENDITURE COULD FINANCE A LARGER QUANTUM OF CAPITTAL EXPENDITURE. THUS SEPARATE ABSOLUTE GUIDELINE
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/ FIGURES
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