The Reserves
66. It is important that we identify the proper role of the reserves. The only way to achieve both continuity and efficiency in developing our programmes for the future is to make sure that our spending remains in step with the pace of economic growth. Hence, it is essential that we make our plans on this realistic basis rather than tailoring them from one year to the next on the basis of available revenue, the current budget surplus or the forecast level of reserves. We must have consistency in our expenditure programmes if we are to secure the best value for money.
67.
For this reason, we test our spending plans against the Medium Range Forecast for the economy, and we examine the trend growth in planned expenditure over a period rather than in terms of a single year. If we look at the results of this exercise since we started the current planning cycle in mid-1990, we have been pretty much on target, taking the situation as a whole. For the two years 1991-92 and 1992-93, total government expenditure is expected to grow by 10.6%, against a target of 10.8%.
$Million
80,000
75,000
Comparison of Recurrent Expenditure with Guideline (at 1991-92 price levels)
70,000
68.260
67.020
65,000
71,330
70,830
74,180
73.960
Guideline Actual
Guideline Revised
Estimates
Guideline Estimates
1990-91
1991-92
1992-93
Year
15
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