| At 20.5 per cent of GDP, total expenditure
in FY99 is estimated at $29.2 billion. Th is an increase
of 5.6 per cent or $1.5 billion over FY98. The increase
is mainly due to a rise in development expenditure,
which I will elaborate later.
As in previous years, the largest allocations
go to defence and education at 25 per cent and 19 per
cent of total government spending respectively. As security
provides the basis for our nation's economic growth
and prosperity, it is important that we maintain a strong
defence capability. Defence spending will therefore
continue at the FY98 level of $7.3 billion, accounting
for 5.1 per cent of GDP.
As the future of Singapore will depend
on the quality of our human resources, we will continue
to invest more in education. For FY99, we have budgeted
$5.7 billion for expenditure on education. Education's
share of GDP has increased steadily from 3.0 per cent
in FY97, to 3.4 per cent in FY98 and to just under 4.0
per cent of GDP in FY99. Our medium-term target allocation
for education is 4.0 per cent of GDP.
Spending by the Ministry of Manpower
to promote manpower development has almost tripled from
$58 million in FY97 to $170 million in FY98, and is
allocated $150 million in FY99. In order to sustain
growth against rising competition, our economy will
have to constantly restructure towards higher value-add
economic activities. The importance of upgrading and
re-training workers to ensure employability in an increasingly
knowledge- based economy cannot be over emphasised.
Spending by the Ministry of Manpower
to promote manpower development has almost tripled from
$58 million in FY97 to $170 million in FY98, and is
allocated $150 million in FY99. In order to sustain
growth against rising competition, our economy will
have to constantly restructure towards higher value-add
economic activities. The importance of upgrading and
re-training workers to ensure employability in an increasingly
knowledge- based economy cannot be over emphasised.
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