SINGAPORE — Apart from the headline-grabbing Budget 2023 measures, it has not gone unnoticed that the Government's financial numbers have tallied with a general trend over the past decade: Its budget deficits are usually not as large as predicted, while surpluses are usually bigger than expected.
According to the analysis of revenue and expenditure released in tandem with the 2023 Budget statement, the overall budget deficit in financial year 2022 was S$4.22 billion, lower than the S$5.34 billion forecast when Budget 2022 was announced in February 2022.
This"prudent approach" is also seen in the way the Government uses its national reserves, as Deputy Prime Minister and Finance Minister Lawrence Wong put it on Tuesday in his Budget 2023 speech. At the same time, the total expected drawdown on Past Reserves from FY2020 to FY2022 is S$40 billion, which is lower than the initial draw of S$52 billion for which the Government had sought and obtained the President’s agreement.
According to Associate Professor of Law at the Singapore Management University Eugene Tan, successive governments under all three of the nation's prime ministers have been and are prudent in managing their Budgets."This means that the Government has been prudent and disciplined in the use of fiscal resources, manifested in balanced budgets and surpluses in most years," he said.
That year, the estimated deficit was off the mark by over S$50 billion. In comparison, the total funds from the overestimated deficits and underestimated surpluses of the other nine years totaled just under S$25 billion. "Given heightened economic volatility and uncertainties, is not necessary a bad approach as it has helped the country build up significant reserves since independence," she said.
The NIRC framework allows the Government to spend up to 50 per cent of the net investment returns on net assets invested by Singapore's sovereign wealth fund GIC, the Monetary Authority of Singapore and state investment firm Temasek Holdings and up to 50 per cent of the net investment income derived from past reserves from the remaining assets.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Top Singapore golfer Amanda Tan to compete in HSBC Women’s World Championship - Singapore News23-year-old Tan will be competing with the world’s top five players, namely Lydia Ko, Nelly Korda, Minjee Lee, Atthaya Thitikul and defending champion Ko Jin-young
Read more »
Singapore to host World Aquatics Championships 2025 - Singapore NewsThe announcement was made by the World Aquatics governing body on Feb 9 and the venue was originally to be in Kazan, Russia but was changed after the Russian invasion of Ukraine
Read more »
Singapore Premier League: VAR ready for use in Community Shield - Albirex vs Hougang - Singapore NewsThe Football Association of Singapore announced that the VAR received the green light after passing a final assessment by FIFA, which comes after an implementation process that began in February 2022.
Read more »
Explainer-What's known about Tesla's 'Project Highland'?SHANGHAI : Tesla plans to slow production at its Shanghai plant in the last week of February to prepare for building a revamped version of its Model 3 sedan, according to a person with knowledge of the matter and a planning memo seen by Reuters.The move was first reported by Bloomberg News.The auto
Read more »
Budget 2023: Lawrence Wong hopes S'poreans ‘understand it’s not sustainable to rely heavily on govt support year after year’ - Singapore NewsHe also discussed the various bonuses, payments, and additional support that Singaporeans may expect in the coming year.
Read more »
‘Govt asking S'poreans to make more babies’ — Jokes abound after additional support for parents announced in SG Budget 2023 - Singapore NewsGovernment-funded paternity leave will double for fathers of Singaporean children born from Jan 1, 2024. Parents’ unpaid infant care leave will also double to 12 days per year.
Read more »