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Singapore Budget 2018: Ministries to spend S$80 billion
A SMALL overall budget deficit of S$0.6 billion, or 0.1 per cent of GDP, is expected for FY18 while expenditure is expected to rise.
Total spending by the ministries should clock S$80 billion in FY18, or 8.3 per cent more year on year, mainly on the back of increased spending in transport, trade and industry and domestic security.
In particular, spending on transport will jump by over 50 per cent to S$13.7 billion, while expenditure for home affairs is expected to rise from S$5.8 billion to S$6.5 billion.
In the case of the Ministry of Transport, the higher expenditure will come from projects such as the Kuala Lumpur-Singapore High Speed Rail; the Johor Baru-Singapore Rapid Transit System Link; funding for the renewal of domestic rail operating assets; as well as for public bus services contracts.
This will make transport the second biggest area of spending after defence (S$14.8 billion).
Meanwhile, for the Ministry of Home Affairs, spending will be channelled towards beefing up existing capabilities of the Singapore Police Force as well as developing new capabilities amid increased terrorist threats.
On the other hand, spending on healthcare is projected to ease from S$10.5 billion to S$10.2 billion owing to lower development expenditure as certain construction projects near completion.
Operating revenue for FY18 is projected at S$72.7 billion, or a 3.3 per cent decrease from the revised estimate for FY17.
This will come on the back of lower revenue from statutory board contributions, stamp duty and vehicle quota premiums.
FY17 saw exceptional contributions from the Monetary Authority of Singapore - under statutory board contributions - as well as a jump in stamp duty collections, both of which are seen as one-off events.
Top-ups to endowments and trust funds will jump from S$4.01 billion to S$7.3 billion, partly due to the S$5 billion injection into the new Rail Infrastructure Fund.
In addition, the government is topping up the GST Voucher Fund by S$2 billion to support payouts under the current GST Voucher scheme.
Net investment returns contribution (NIRC) is projected to come in at S$15.9 billion, or 8.5 per cent higher than the revised figure for FY17.
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