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For FY2001, the revised estimate for
operating revenue is $31.53 billion and for total expenditure
is $27.69 billion. After discounting special transfers
totalling $5.27 billion, the budget deficit is $1.43
billion.
A summary of the revised FY2001 operating revenue,
operating expenditure and development expenditure estimates
is given in Table III below.
Table
III: THE REVISED FY2001 BUDGET
The revised operating revenue for FY2001
is projected to be $31.53 billion, a decrease of $2.20
billion (-6.5%) over the FY2000 collection of $33.73
billion. The decrease is due to lower tax revenue.
Tax Revenue is expected to fall by
$1.60 billion or 6.3% to $24.03 billion. This is mainly
due to the expected decrease in collection from Corporate
income tax, statutory board contributions, Stamp Duty
and Goods & Services Tax (GST).
Corporate income tax collection is
projected to fall by 8.0% to $7.65 billion in view of
the economic downturn in FY2001.
Collection from statutory board contributions
is also expected to decline by 27.7% to $862.22 million
in FY2001. The decline is due to the lower contribution
from MAS as a result of its lower FY2000 accounting
surplus.
Collection from stamp duty is expected
to decrease by $507.38 million (-40.4%) in FY2001. This
is due to the weaker performance in the private residential
property market, where lower volume of transactions
and property prices would result in lower collections.
It also take into account the 30% reduction in stamp
duty rates on all chargeable instruments executed on
or after 13 October 2001 until the end of 2002.
GST is expected to decrease by 12.8%
to $1.85 billion due to lower consumption as a result
of poor economic conditions.
Total revenue from fees and charges
is projected to be $4.63 billion or 18.1% lower than
the FY2000 collection of $5.65 billion. This is due
to the reduction in COE quota and vehicle premium.
Net investment income contribution
is estimated at $2.74 billion as compared to actual
FY2000 of $2.29 billion.
Other miscellaneous revenue is expected
to decrease by 13.6% to $140 million due to the lower
collection of loan-related and other financial receipts.
The revised total expenditure for FY2001
is estimated at $27.69 billion, a decrease of $217.66
million or 0.8% over actual FY2000. The decrease is
due to lower development expenditure. Of the total expenditure,
operating expenditure accounts for $18.73 billion or
67.6% and development expenditure for $8.96 billion
or 32.4%.
The revised FY2001 operating expenditure
is higher than actual FY2000 expenditure by $314.70
million or 1.7%. However, actual FY2000 expenditure
includes the one-time compensation payment of $1.94
billion for liberalising the telecommunications sector.
Excluding this one-off item from the actual FY2000 figure,
the revised operating expenditure is higher than actual
FY2000 by $2.26 billion or 13.7%. The increase is attributed
mainly to MOE (+$546.62 million), MINDEF (+$528.98 million),
MOH (+$381.53 million) and the Ministry of Home Affairs
(MHA) (+$282.48 million). MOE's increase is due mainly
to higher manpower expenditure arising from the implementation
of the Pay and Career Structure of the Education Service
and the provision for matching of contributions to the
University Endowment Fund. MINDEF's increase is due
to filling of essential vacancies and higher operating
expenses. MOH's increase is due to higher provision
for training and statutory boards, and the expansion
of existing programmes and the implementation of new
ones. MHA's increase is due to higher maintenance costs
for new buildings as well as higher manpower costs arising
mainly from the implementation of the FY2001 Home Affairs
Uniformed Services (HUS) Career Review.
The revised FY2001 development expenditure
is lower than actual FY2000 by $523.7 million or 5.6%.
However, actual FY2000 includes land-related expenditure
which is reclassified as an expenditure item under Other
Development Fund Outlays starting from FY2001. Excluding
land-related expenditure, the actual FY2000 figure is
$8.37 billion and the increase of FY2001 over actual
FY2000 is $588.79 million or 7.0%. The increase is for
MTI for the implementation of the Science and Technology
Plan 2005 ($573 million).
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