FY2007 Budget Position

7.1 Mr Speaker, Sir, let me now summarise the FY2007 budget position. Excluding Special Transfers and tax changes, we expect a surplus of $1.1 billion for FY2007. The GST increase, reduction in corporate tax and other tax changes taken together, will increase FY2007 operating revenue by $0.3 billion. The GST Offset Package, Workfare, and top-ups to NRF and the endowment funds will cost $2.1 billion. After taking these into account, the estimated FY2007 Overall Budget Balance is a deficit of $0.7 billion. The Government will not need to draw on past reserves as the deficit can be fully financed by funds accumulated since the new Government took office in May 2006. Details of the revised fiscal positions for FY2006 and FY2007 can be found in Annex F.