TNAG-1203-FCO40-1505-Policy-on-visas-and-entry-certificates-in-Hong-Kong-1982 — Page 221

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VOLUME 8

Annex A

BUDGETARY AID PROCEDURES

Financial Control

1.

(ANNEX 17)

For so long as the Government of a dependent territory requires budgetary assistance it will be necessary for the British Government to exercise a measure of supervision over its finances. In future this supervision will be exercised through two main procedures:-

i)

an annual budgetary review

2.

ii)

examination of the Draft Estimates

Whereas in the past there has been a detailed scrutiny, in so far as this was possible, of the Draft Estimates, the introducing of annual budgetary reviews to be carried out in the territories themselves in co-operation with the Development Division will obviate the need for this type of scrutiny in the ODM/FCO. Nevertheless the territories will be required to continue to submit annual estimates in accordance with the provisions of Colonial Regulations.

The Annual Review

3.

The purpose of the annual consultative visit by the Development Division to each territory is:

i) to review recurrent (and capital) expenditure programmes over the next three years against the background of the territory's economic prospects, and

ii) to agree planning figures (expressed in current prices at the time of the review) for recurrent expenditure and local revenue in each year of the triennium rolling the programme forward by one year

iii)

the three years.

to agree on the basis of the formula in the appendix the cash figures for the first of

The Rules Governing the Provision of Budgetary Support

4.

Having established the gap between recurrent expenditure and local revenue the Development Division will recommend to the FCO appropriate levels of budgetary support. After consideration of these recommendations in FCO/ODM territories will be advised of:

i) appropriate levels of expenditure, local revenue and budgetary aid for the following year (in projected cash prices)

ii)

maximum planning levels for expenditure, minimum local revenue requirements and budgetary aid for the two subsequent years, all figures expressed in prices current at the time of the review.

The provision of these agreed levels of budgetary aid will be subject to the following rules:

October 1978

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