FY14 shortfall smaller than projected at 0.03% of GDP

THE government has unveiled a smaller-than-estimated Budget deficit of S$0.13 billion for fiscal year 2014, versus a projected S$1.16 billion deficit, thanks in part to higher operating revenue and larger net investment returns contribution (NIRC).

Private-sector economists were generally expecting the smaller deficit and some were even banking on a surplus, which failed to materialise. At S$0.13 billion, the deficit was about 0.03 per cent of GDP.

Meanwhile, the actual surplus for FY13 was revised upwards to S$5 billion from S$3.92 billion previously.