TNAG-1347-FCO40-1777-Financial-policy-in-Hong-Kong-1984 — Page 4

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RESOURCE MANAGEMENT. COMMITTE OFFICE 1985/86

FOREIGN AND COMMONWEALTH

1. The Resource Management Committee (RMC) will meet in November to consider how the amount which will be available in 1985-86 for grants and grants-in-aid (hereinafter referred to as grants) should be allocated. The recommendations of the RMC will subsequently be submitted to Ministers.

2.

I attach lists (Annexes A and B) showing the grants approved for 1984/85. Departments are now asked to review all grants which they sponsor, and consider whether they should be renewed in 1985/86, and at what level.

3. Although the bilateral Public Expenditure Survey discussions between the Secretary of State and the Chief Secretary, Treasury, have not yet been concluded, we must assume for planning purposes that the overall cash limit for grants will be no more than the 1984/85 level plus a forward inflation factor of 4%; but it may well be less.

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4. Your bids should therefore be realistic, and should represent actual money required in 1985/86. In this year's PESC exercise in April Departments submitted forecasts of expenditure on grants in the three financial years 1985/86 1987/88 which were considerably in excess of the provision at present available. Estimates for grant-aided bodies should not be forwarded to Finance Department before they have been thoroughly scrutinised and, if possible, reduced. A detailed case (one side of a separate sheet of paper for each grant please) must be made for all bids and should include a sentence showing the effect that withdrawal or reduction of the grant would have on that body and HMG's policies. cases, departments should ensure that Finance Department has received a copy of the organisation's latest audited accounts.

5.

Proposals for new grants, if any, should be submitted in the form laid down in DSP Volume 1, Annex 6.

6.

The usual circular about other 1985/86 Estimates will be sent out later separately.

7. All returns should reach Miss Plater, Room 2/121 OAB by 12 October.

copy should go to Planning Staff. Questions should be addressed to Joyce Plater (273-3677) or Bill Horton

(273-3733) in the first instance.

26 September 1984

R J Beveridge Finance Department