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2.2 First, let me recap the FY 2002 Budget. I
refer Members to the first column of the budget
statistics table on the screens and in your Handout.
Table 6: Budget Statistics
for FY 2002 and FY 2003
(figures rounded off in $ billions)
 |
| Taxes & Fees |
26.8
|
25.3
|
26.6
|
| NII Contribution |
2.4
|
3.8
|
3.0
|
| Operating Revenue |
29.2
|
29.1
|
29.6
|
| Total Expenditure |
28.3
|
27.4
|
30.0
|
|
Special Transfers
• ERS
• Lifelong Learning Endowment Fund
• Medical Endowment Fund (Medifund)
|
-
-
-
|
1.2
0.5
0.1
|
0.60
-
-
|
| Surplus/(Deficit)
|
0.9
|
(0.1)
|
(0.9)
|
2.3 When I presented the budget last year, I
estimated operating revenue at $29.2 billion and
total expenditure at $28.3 billion, leaving a
modest surplus of $900 million. I also estimated
then that the surplus would turn into a small
deficit of $190 million after accounting for the
package of offsets, rebates and ERS.
2.4 As the second column of the table shows,
the revised operating revenue is almost the same
as the budgeted amount. Tax revenues were lower
because of the cut in corporate income tax to
22% in YA 2003 and slower economic growth, but
Net Investment Income (NII) contribution was higher
than expected. The revised total expenditure is
about $1.0 billion less. Therefore, in addition
to the $1.2 billion special transfer for the ERS,
I have decided to make additional special transfers
to the Lifelong Learning Fund (LLF) and the Medical
Endowment Fund (Medifund).
2.5 The Lifelong Learning Fund is an important
part of our continual education and training (CET)
framework. Established three years ago, the Fund
will be built up to a target size of $5.0 billion
to ensure a secure and continuing stream of income
to support lifelong learning in Singapore. As
highlighted by the ERC, we spend less on CET at
the national level than on pre-employment, formal
education and training. I have therefore decided
to transfer $500 million into the Lifelong Learning
Fund, to bring the Fund to $1.5 billion. This
will generate $60 million of interest income a
year to fund skills upgrading and retraining programmes.
2.6 The Medifund has helped many needy Singaporeans
to pay for their medical bills during this economic
downturn. To enable the Medifund to help more
Singaporeans, I have decided to increase it to
$900 million through a $100 million special transfer.
2.7 Taking the revised revenue, expenditure and
special transfers into consideration, an overall
budget deficit of $90 million is
now expected for FY 2002.
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