| Operating expenditure is estimated
to be $14.1 billion in FY97, slightly lower than the
$14.5 billion spent in FY96. However, FY96 operating
expenditure was unusually high, since it included a
one-off compensation payment of $1.5 billion to Singapore
Telecom for the early termination of its exclusive telecommunication
privileges. If this is disregarded, operating expenditure
will rise by 8 per cent. This is largely due to a 9
per cent increase in Running Costs, from $11.9 billion
in FY96 to $13.1 billion in FY97. This is less than
the projected GDP growth rate in nominal terms. Transfers
will increase marginally by 2 per cent from $1.02 billion
in FY96 to $1.05 billion.
Education accounts for the largest
increase of $450 million in operating expenditure. More
funds are provided to continue the restructuring of
the Education Service by promoting deserving teachers
and recruiting NIE trainees to the Service before graduation.
Higher grants have also been provided for the tertiary
institutions due to an increased intake of students.
The Government will spend more to
encourage reading and learning. More community and children's
libraries will be built in convenient locations to promote
the reading habit whilst the greater use of information
technology systems in our libraries would provide easier
and faster access to information from around the world. |
