| Total Government expenditure is
projected at $23.9 billion or 16.2 per cent of GDP,
down from 17.9 per cent for FY96. This is still significantly
higher than Government expenditure over FY93-95, which
averaged 13.3 per cent of GDP. The increase is mainly
due to higher development spending, which has risen
from around 4 per cent of GDP in FY93-95 to more than
6 per cent of GDP since FY96. On the other hand, operating
expenditure in FY97 is expected to remain in the FY93-95
range of 9-10 per cent of GDP.
In line with Government expenditure
priorities, the largest share or 38 per cent of the
budget will go towards social & community services,
which includes education, health, the environment and
public housing as these are areas which yield lasting
returns. Spending on security will take up the next
largest share, at roughly 33 per cent of the budget.
Spending on economic and infrastructural development
will take up 20 per cent of the budget in FY97, which
is much more than the average of 15 per cent over the
last 5 years. This includes substantial funding for
economic promotion as well as transport improvements
such as the building of MRT, LRT and roads. |
