itall
environment for industry, with the availability of the necessary infrastructure and support services.
So, on services related to industrial development, we are planning to spend subject to this Council's approval, significantly more in 1988-89 than in earlier years and I shall be giving details later when I present my expenditure proposals.
Strategy for revenue
to
47.
4770/196305
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I turn now to my strategy for public revenue over the next few years.
I have already indicated the potential that exists for a lowering of the tax burden. After allowing for the expenditure programmes, I am able to propose as package of taxation measures that overall will reduce recurrent revenue
per cont by about 5% of present yields. The effect will be to reduce sthe average overall surplus in the Medium Range Forecast period to $2.7 billion a year. This will still leave a comfortable margin to maintain the · value of our réserves in real terms and to provide a cushion for unforeseen events.
48.
The balanced package that I shall detail later is however more than just a a simple lowering of some tax rates: The particular measures I am proposing are designed to move our overall fiscal regime towards what I believe will be a more robust and equitable shape for the future.
49.
When Members commented last year on my remarks about the potential value of a wider and more stable tax base, I gave an assurance that nothing would be proposed to alter the balance between direct and indirect taxes without the most careful consideration of the potential effects. Since then, we have been working to identify the advantages and disadvantages of different ways of bringing about such a move towards indirect taxes. In this regard, let me remind Members of the basic criteria which I consider any major new indirect tax
tax should
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