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The annual Government Budget is prepared
on a financial year (FY) basis. The FY for the Government
runs from 1 April of
one year to 31 March of the following year. For example,
FY2006 is from 1 April 2006 to 31 March 2007.
The Budget serves
two purposes:
- It serves as a record of
the approved levels of expenditure and accountability
in the usage of government funds; and
- It is also a plan
of the estimated government revenue and expenditures
for the FY.
Before the FY starts, the Minister of Finance would present
the annual budget that has been approved by Cabinet to Parliament.
For Budget 2007, this will take place on 15 February. The
budget debate and Committee of Supply sessions then follow,
where Members of Parliament can query the Government on the
expenditure of funds in the previous FY, as well as the proposed
budget for the next FY, for the various ministries and organs
of state.
After Parliament passes the Supply Bill, thus giving its
approval of the budget, the President then needs to give
his assent to the bill before it can come into effect. The
President's role is to safeguard the past reserves of the
nation, and he may withhold his assent to the Bill if, in
his opinion, the estimated revenue and expenditure are likely
to draw on past reserves.
Once the President gives his assent to the Supply Bill,
it is then enacted as law as the Supply Act. The Act will
then control the amount of money that the Government may
spend in the coming FY, and for what purposes this money
may be spent on.
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