| This Government will continue to
adopt prudence as the cornerstone of its expenditure
policy. As before, we will focus on the delivery of
essential public goods and services, consolidate our
national economic infrastructure and devote more resources
towards the development of our people. The public sector
will be contained to grow no faster than GDP, thus ensuring
that adequate manpower and financial resources are available
for the private sector to continue in its role as the
growth engine of the economy.
It is important that Government invest
heavily in the development of our economic infrastructure
and human resources in order to maintain and improve
Singapore's economic competitiveness in the face of
growing competition from both the region as well as
developed countries. This investment will attract more
high value-added and strategic industries to Singapore.
In tandem with this, we will provide generous financial
assistance to upgrade our local companies, train our
workers and develop indigenous capabilities in high
value-added skills and R&D.
At the same time, we will have to
cater for the rising aspirations of Singaporeans for
a higher quality of life commensurate with increasing
affluence. The URA will continue to develop high quality
housing concepts such as Ponggol 21. A world-class public
transport system is also planned for Singapore, combining
a comprehensive public transport system with an efficient
road network.
It is important that we do not let
affluence erode our cohesiveness and resilience as a
nation and society. To foster a cohesive, resilient,
caring and gracious society, the Government will allocate
more funds to promote awareness of our arts and heritage,
and community and sporting activities. In particular,
nine Community Development Councils will be set up within
this fiscal year to promote stronger ties between the
Government and the people.
Revenue growth in FY97 is not expected
to keep pace with the growth of the Singapore economy
because of tax cuts introduced to maintain a low and
competitive tax regime. Hence, only a modest budget
surplus of $4.8 billion is projected for FY97, after
providing for an increase in development spending. Some
of this surplus can be used to augment Edusave and Medifund
and I propose to make a final contribution of $500 million
to top-up the Edusave Endowment Fund to its target figure
of $5 billion. An allocation of $100 million will also
be made to Medifund to ensure that affordable healthcare
continues to be available to all. |
