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Operating revenue in FY98 is
expected to grow by 3.8 per cent in FY98, lower
than the average growth rate of 6.7 per cent over
the past three years. This is due to the effects
of lower economic growth and the follow through
of tax cuts introduced in previous years.
Notwithstanding the slower increase
in revenues, our revenue base remains robust and
a deficit budget is not envisaged. Adequate funds
will be available to maintain, and even increase,
where necessary, expenditures needed to support
long term growth and future competitiveness. As
mentioned earlier, this will mainly be in the
areas of education, economic infrastructure and
defence. However, because of the considerable
uncertainties which continue to overhang the region,
we will exercise fiscal restraint in other non-crucial
areas of expenditure. The FY98 Budget Estimates
have been prepared on this basis. |
