11.

Operating expenditure in FY2000 is estimated at $16.1 billion or 9.7 per cent of GDP, an increase of $969 million or 6.4 per cent over FY99. 92 per cent of operating expenditure is for ministries' running costs while the remaining 8 per cent is for transfer payments to members of the public and outside organisations.

12.

Total running costs are projected to increase by 6.9 per cent to $14.8 billion because of higher manpower costs, increases in other operating expenditure, and larger grants to the statutory boards. Expenditure on Transfers is estimated at $1.3 billion, the main items being subventions to the restructured hospitals and town councils.

13.

Manpower expenses are estimated at $3.3 billion, an increase of $323 million or 10.8 per cent. The increase is due to restoration of the salary cut imposed service-wide in 1999, partial restoration in employers' rate of CPF contributions and normal salary increments. In addition, there is also a net increase of some 2,400 posts, mainly in MOE to cater for increased student intakes.

14.

Other operating expenditure is expected to increase by 4.1 per cent to $8.8 billion.

15.

Grants-in-aid to statutory boards will increase by 12.1 per cent to $2.7 billion, mainly because of larger grants to higher educational institutions and aided schools to cater to increased student intakes and restoration of salary cuts.