NIRC swells to swing FY16 position to surplus of S$3.45b

NET returns from investments are boosting the Singapore government's efforts in lifting the economy out of challenging growth conditions.

Net investment returns contribution (NIRC) this year, which starts incorporating contributions from Temasek Holdings, is projected to reach a historic high of S$14.7 billion, from FY2015's S$9.9 billion. This makes it the single largest revenue contributor for FY16.

"FY16's NIRC as compared to FY15's is an increase of about 50 per cent, showing that Temasek's contribution is significant, and will be crucial in future Budgets in view of the expectation that government spending will increase," said Low Hwee Chua, head of tax services at Deloitte.