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SINGAPORE, Feb. 20 (Xinhua) -- Singapore's Finance Minister Heng Swee Keat on Monday announced that a permanent 2 percent downward adjustment to the budget caps of all ministries and organs of state from Financial Year 2017 onwards.
Minister Heng said in the coming year, the expenditure needs may raise rapidly particularly in healthcare and infrastructure; thus, the government must continue to spend judiciously, emphasize value-for-money and drive innovation in delivery.
"We must make these decisions in good time, to ensure that our future generations remain on a sustainable fiscal footing. As the Chinese idiom goes, let us thatch the roof before it rains," said Heng.
The minister explained that four ministries that are serving security needs, or significantly expanding their services -- namely Home Affairs, Defence, Health and Transport -- the 2 percent adjustment will be phased in over Financial Year 2017 and Financial Year 2018.
Heng added some of the funds will be used for cross-agency projects that deliver value to citizens and businesses, such as initiatives by the Municipal Services Office.
In Financial Year 2017, the government's budget remains expansionary. Ministries' expenditures are expected to be 3.7 billion Singapore dollars (2.61 billion U.S. dollars), or 5.2 percent higher than in Financial Year 2016. Overall, a smaller budget surplus of 1.9 billion Singapore dollars (1.34 billion U.S. dollars), or 0.4 percent of GDP, is expected. Enditem
