SECRET
2. THE BUDGET THEORETICALLY PROVIDED FOR A DEFICIT OF DOLLARS
355 MILLION. THE TURN-ROUND OF DOLLARS 912 MILLION CAN BE EXPLAINED AS FOLLOWS:
MYLLADO
MM
RECURRENT REVENUE (UP)
+342
(OF WHICH E.P.T.
CAPITAL REVENUE (UP).
+201
CAPITAL EXPENDITURE (DOWN)
+481
RECURRENT EXPENDITURE (UP)
112
+ 912
DOLLARS
222 MN, BETS AND SWEEPS
TAX
D
DOLLARS 70 MN AND
FIRST REGISTRATION TAX +
COLLARS 51 MN)
(OF WHICH LAND SALES +
DOLLARS 180 MN AND ESTATE DUTY + DOLLARS 22 MN)
(OF WHICH UNDER-SPENDING ON
THE TWO P.W.P. COMPONENTS ACCOUNTS FOR DOLLARS 428 MN)
3. UNDERSPENDING ON THE PUBLIC WORKS PROGRAMME WAS DUE TO :
(A) CONTRACT PRICES CONTINUING TO BE LOWER (BY AS MUCH AS 20-30%) THAN THE PRICES ASSUMED WHEN THE DRAFT ESTIMATES FOR 1976-77 WERE BEING PREPARED:
(B) OUR BELATED REALISATION THAT TO SPEND BIG MONEY IN THE EARLY STAGES OF COMPLICATED ENGINEERING PROJECTS IS DIFFICULT (AND HIGHER PRIORITY PROJECTS TENDED TO BE MORE COMPLICATED THAN LOWER PRIORITY PROJECTS, AS IT HAPPENS):
(C) DELAYS IN LETTING CONTRACTS CAUSED MAINLY BY DIFFICULTIES IN
LAND CLEARANCES AND ACQUISITIONS.
2 SECRET
/FINANCIAL POSITION
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