TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 42

General Revenue Account

-

Draft Estimates of Expenditure

through

71.

a

to maintain

expenditure

We have achieved our present position

cautious approach to expenditure growth. If we are

a satisfactory budgetary position,

we must contain

growth to within the planning

the planning assumption of a 5 1/2% average

annual growth rate in the economy.

I aim to hold public

expenditure a little below this figure in order to allow room

for unforeseen events, and thus my estimates for 1987-88

accommodate an overall expenditure growth rate of 4.9% in real terms. This growth rate is just under 1% more than that for

1986-87.

72.

I recognize that in setting the limits to public expenditure I must have regard to a pent up demand for services following

period of a

restraint. But I do not believe that

expenditure should be allowed to rise automatically. It remains

vital that all new expenditure proposals be judged on their

merits.

Furthermore, I consider it essential that any growth

should be related to clear and established policy objectives

rather than being brought about by a general slackening of control. We constantly improve our procedures in this area.

73.

Turning to the total

expenditure on General Revenue

Account, I have provided for a figure of $44.4 billion (23). With the need for control firmly in mind, I set guidelines for

(23)

Draft Estimates

1987-88

($mn)

Recurrent expenditure Capital expenditure

34,338

1,871

36,209

Additional commitments

1,600

Transfers to funds

6,600

44,409

21

/departments