of taxpayers' money will be spent on Government personnel, Finance Minister the Hon. David Saul has conceded.

Dr. Saul said the new Budget would see more than 57 percent of Government spending going on wages, salaries and pensions -- well above his avowed goal to reduce salaries to 50 percent or less of all expenditure.

In the 1992/93 Budget, almost $190 million out of total expenditures of $328.9 million will be spent on salaries, wages, overtime, other personnel costs and training.

Dr. Saul said the cuts in programmes had resulted in spending on salaries increasing.

"That is the Catch-22 I am in,'' he explained. "We have kept numbers and wage settlements down, but we have also reduced programmes by $17 million and by definition, the cost of the salary component has gone up.

"Personnel costs ought to come down and I hope they are now at their maximum,'' he said. "If we slashed the number of employees in Government now, it would just increase unemployment.

"The best way to hold down costs is to cut programmes and make the remainder more efficient. We are seeing achievements in that area.'' Government has moved to reduce costs and programme numbers. Overall, Government expects to employ 72 fewer employees, or 1.5 percent fewer than last year.

According to Government's Economic Review, total staff costs including training, accounted for 47.8 percent of expenditure in 1980/81. In 1990/91, staff costs had increased to 55.6 percent and were estimated to have increased to 56.5 percent last year.

The estimates for 1992/3 will see personnel costs increase to 57.4 percent of total expenditures, although the number of "man years'' in Government will be reduced by two percent.

The increase in salaries came under fire from the Chamber of Commerce on Sunday, when president Mr. Thomas Dickinson said he was disappointed Dr. Saul had made no reference to maintaining wages, salaries and benefits to 50 percent of spending in the Budget statement.

Some cuts in manpower have been made, with seven unfilled positions in the Prisons Service being eliminated and 16 Police constables jobs being cut.

Commissioner of Police Mr. Clive Donald said the Police Force would be reduced by 16 constables.

"It will affect the efficiency of the Force,'' he said.

"But if the Force is brought (back) up to strength, it will be a Government decision,'' he said.