CITY COUNCIL BUDGET FOR 1960

Mr A. P. Rajah asked the Prime Minister what steps have been taken in the exercise of the functions, duties, powers, discretions and authorities previously had and exercised by the City Council under the provisions of sections 71 and 72 of the Local Government Ordinance, 1957, with regard to the City Council Budget for 1960.

The Parliamentary Secretary to the Prime Minister (Mr Chan Sun Wing) (for the Prime Minister): Mr Speaker, Sir, I have been asked by the Prime Minister to reply. The Prime Minister received the City Council Draft 1960 Budget prepared in accordance with section 71 (1) of the Local Government Ordinance, 1957, on 23rd October 1959.

The Prime Minister approved the Budget on 23rd December, in the exercise of his powers under section 72 (2) , subject to the deletion of development items and to further scrutiny of the Budget to effect economies.

The draft Budget, as presented to the Prime Minister, provided for an estimated deficit of some $13 million. The Government has resolutely opposed deficit budgetting, and has made known its intention to effect all possible economies in public expenditure. The Prime Minister therefore gave instructions for a further scrutiny of special expenditure items, particularly those items which provide for projects which come within the scope of the Schedule to the Development Fund Ordinance, 1960. The work of scrutiny and deletion has been carried out by the Ministry of Finance in conjunction with the City Council and is still proceeding.

While scrutiny is in progress, expenditure on items of special expenditure has been frozen, except where commitments have already been made prior to 1st January, 1960. When scrutiny has been completed, the Government will consider providing the funds necessary to implement those projects, which have been accepted. Any further deletions could be effected by Supplemental Budgets.

A summary of the City Council 1960 Budget was published in the Gazette on 8th January, 1960.