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2.6 The operating revenue for FY 2002 is estimated
at $29.2 billion, including a $2.4 billion contribution
from NII. This is $2.3 billion less than the operating
revenue for the previous year. We expect taxes
and fees to be lower than last year, partly because
they will be based on last year's earnings, which
were affected by the recession, and partly because
of the rebates and tax reductions which were announced
in the off-budget packages, but take effect in
this financial year.
2.7 This year, operating and development expenditures
are budgeted at $19.5 billion and $8.8 billion,
respectively. Total expenditure in FY 2002 thus
comes to $28.3 billion, or $0.6 billion more than
last year. Leaving aside, for now, any provision
for special transfers and the impact of the tax
changes to be discussed later, we can expect a
modest budget surplus of $0.9 billion as our economy
recovers.
2.8 The Government is therefore not cutting back
on expenditure even though revenue has fallen.
This is to fund urgently needed projects and services,
and not because a new Minister for Finance has
loosened the purse strings. As a result, the budget
is very tight. This underscores the critical importance
of spending only on essentials, and eschewing
frills and extra-vagance. My ministry has reminded
all government departments of these constraints.
I also urge honourable members to bear them in
mind when you request the government to be more
generous towards your cherished projects in the
Committee of Supply.
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