Appendix B-Contd.
3 It should be noted that the volatility in spending on some service groups is partly a reflection of a high element of capital spending within the total. Capital expenditure is, by its nature, volatile. The following diagram shows the relationship between capital and recurrent spending for each service group in 1987–88:
Consolidated Account Expenditure
by Service Groups (1987-88 Revised Estimate)
Diagram 1
General Services
Security Services
Economic Services
Community Services
Social Services
Recurrent Expenditure
Capital Expenditure
0 2
4
6 8 10
12 14 16 18 20 22 24 26
28
30 $ Billion
4 In particular, it will be noted that Community Services have a higher proportion of capital spending (51%) relative to other service groups. This is particularly so for Transport and Land and Civil Engineering within the Community Services group.
5 Since 1983-84 a significant shift in the allocation of Government's resources has taken place towards Social Services. In particular, Education has increased its share from 14.9% to 18.0%, Medical from 7.7% to 9.4%, and Social Welfare from 5.0% to 5.7%. This shift reflects not only increases in the underlying demand for these services, but also the emphasis which the Government has placed on improving standards. The share for Economic Services has also grown (from 3.3% to 4.0%), due particularly to capital spending on extension works at the airport.
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