TNAG-2472-FCO40-3599-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 25

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P.33

The difference

between

the

ceiling

Paper 5 (P. 5 of 6)

for recurrent

expenditure and "baseline" spending represents the amount that can be distributed for new services and improvements to existing services.

14..

оп

For capital expenditure, the difference between the expenditure ceiling and forecast expenditure committed projects represents the amount of funds that can be allocated to new capital projects.

15.

Branch In parallel,

Secretaries are asked to submit prioritised spending proposals in their programme areas. These bids, taken together with the views of the Legislative and Executive Councils, are considered by the "Star Chamber" (a committee comprising the Chief Secretary, the Financial Secretary, the Secretary for the Civil Service and the Secretary for the Treasury).

16.

to

Recurrent Expenditure

Decisions are then taken to allocate global sums

areas individual Secretaries for their programme

in

of

respect

the next financial year, together

indicative levels of

levels - of spending for the following

forecast years.

with

three

17.

to

Following the receipt of these global would inform those Heads of

Secretaries

sub-allocate

individual

of

allocations, Departments who are accountable to them of their decisions

funds

Heads as between Expenditure. Thus the process of drawing up the draft annual Estimates of Expenditure on Recurrent Account, which forms a part of the Appropriation Bill, is largely a matter of fine tuning.