DUTCH TO MEET 1987 PUBLIC SECTOR DEFICIT TARGET
Dutch public authorities are on course
to meet the 1987 public sector deficit target of 7.9 pct of net
national income (NNI) despite excess spending by the central
government, according to a leaked official report.
    The so-called Spring Report, giving latest revenue and
expenditure figures and to be discussed by the Dutch cabinet
today, was leaked in advance to the Dutch press. The Dutch
Finance Ministry declined to comment on the press reports.
    Newspapers quoted the report, drafted by Finance Minister
Onno Ruding, as saying unexpected rises in revenue would
compensate for excess spending of 3.1 billion guilders.
    Ruding, putting this year's public sector borrowing
requirement 0.1 percentage point below last September's target
at 7.8 pct, criticised the excess spending but will not seek
additional spending cuts for 1987 because of the surprise boost
in revenue, the report was quoted as saying.
    Excess spending by the central government was put at 2.8
billion guilders, while market factors accounted for another
300 mln in unbudgetted expenditure.
    But 1987 revenue was boosted by an unexpected 3.55 billion,
including 1.9 billion in tax revenue and 500 mln guilders in
income from natural gas sales.
    Ruding has said the 1987 excess spending will burden the
1988 budget with an additional 1.9 billion and the cabinet has
already pledged 1.2 billion in cuts to narrow the gap.
    The cabinet is to discuss in coming months what further
austerity measures will be needed next year to keep the
government on target for its 1990 aim of a public sector
borrowing requirement of no more than 5.25 pct of NNI.
    Ruding has already met opposition from the Liberal and
Christian-Democrat factions carrying the government majority in
parliament to his calls for more spending cuts in the 1988
budget to counter a slow-down in economic growth.
 REUTER
