7.

Operating revenue for FY2000 is estimated at $31.4 billion, an increase of 8.6 per cent over FY99. As a percentage of GDP, the increase is from 18.8 per cent in FY99 to 19.0 per cent in FY2000. The rise in revenue collection is mainly due to the good economic growth forecast for 2000. With total FY2000 expenditure budgeted at $29.0 billion, a budget surplus of $2.5 billion or 1.5 per cent of GDP, is projected. However, the surplus will not be achieved at the expense of cutting back on essential spending. In fact, total expenditure in FY2000 is expected to rise by more than 12 per cent, with a substantial increase of 21 per cent in development spending.

8.

We are thus back in the happy position of being able to add to our reserves, whilst continuing to invest in and upgrade our economic infrastructure and human resource capabilities. The economic crisis has however amply demonstrated the importance of living within our means and the need to accumulate budget surpluses in good years so as to have the resources to deal with economic downturns.

9.

I will now highlight the salient features of the FY2000 expenditure budget.