| Recurrent public expenditure is expected to grow by 4.8% in real terms
over the revised estimate for 1999-2000. Within this overall growth, Recurrent
government expenditure will increase by 5.7% in real terms over the
revised estimate for 1999-2000. This level of year-on-year growth in recurrent
government expenditure is partly attributable to expenditure in 1999-2000 lower than the
original estimate reflecting significant efforts on the part of Controlling Officers to
control costs in the light of the overall financial position and in preparation for the
savings required under the Enhanced Productivity Programme. Recurrent government
expenditure in 2000-01 is planned to increase by only 2.5% in real terms over the spending
plans for 1999-2000 published a year ago. This growth of 2.5% over the original estimate
for 1999-2000 is lower than the forecast trend growth rate of GDP in order to redress the
imbalance between the cumulative growth in government expenditure and the cumulative
growth in GDP as shown in chart 1. The
major improvements in services in 2000-2001 in the Health,
Social Welfare, Education and Security policy areas groups are detailed on Growth in Recurrent Public Expenditure in 2000-01 in Major Policy Area
Groups .
The significant changes in recurrent public expenditure in other policy
area groups are:
Community and External Affairs (-1.6%)
The reduction reflects efficiency gains in the delivery of leisure and cultural services
arising from the reorganisation of municipal services from 1 January 2000. This is partly
offset by increased spending on district and community relations.
Economic (+3.9%)
The increase largely arises from the recurrent requirements of the implementation of the
first phase of the Electronic Service Delivery scheme, the general expansion of computer
facilities, the provision of a recurrent grant to the Applied Science and Technology
Research Institute and increased expenditure on the enforcement of intellectual property
rights. These increases are offset, in part, by a reduced subvention to the Trade
Development Council reflecting the reduced yield from declaration charges in respect of
domestic imports and exports on which the level of subvention is calculated.
Environment and Food (+2.2%)
Compared to previous years, the definition of this Policy Area Group has been expanded to
include expenditure on environmental hygiene and food safety undertaken previously by the
two provisional municipal councils, previously included under the Recreation, Culture and
Amenities Policy Area Group, and expenditure on food supply hitherto reflected under
Economic Policy Area Group. Comparative figures for 1999-2000 have been accounted for in
accordance with the revised definition. Within the overall growth of 2.2%, expenditure on
environmental protection and conservation in 2000-01 will grow by 7.6% over the revised
estimate for 1999-2000. This reflects additional resources for commissioning and operating
new sewage treatment plants, increased payments for the disposal of waste due to the
commissioning of new facilities, additional staff for implementing air quality initiatives
and additional resources for new barging points and for sorting facilities for
construction and demolition waste. This growth in expenditure on environmental protection
is partly offset by reduced expenditure on environmental hygiene (-2.0%) and on food
supply and food safety (-0.5%) reflecting efficiency gains in these areas arising from the
reorganisation of municipal services.
Housing (-0.3%)
The decrease reflects the reduced recurrent expenditure of the Housing Authority.
Infrastructure (+3.8%)
The increase reflects the additional spending required to maintain the enhanced road
network, the operation and maintenance of the expanded water supply infrastructure and the
provision of additional resources for stepping up the removal of unauthorised building
structures.
Support (+10.7%)
Within this Policy Area Group there is an increase in the expenditure on Central
Management of the Civil Service of 13.8%. This arises largely as a result of increases in
statutory pension payments reflecting the full cost in 2000-01 of retirees in 1999-2000
together with provision for further retirements in 2000-01. Expenditure on Constitutional
Affairs rises by 33.2% as a result of the additional resources required for the 2000
Legislation Council Elections. |
