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5.24 First, the Government intends to amend the Constitution to revise the rule that allocates Net Investment Income (NII) from past reserves for spending. We are studying this carefully and discussing with the President the proposed revisions to the Net Investment Income formula. We expect to be able to increase the investment income available for spending by the Government by taking in capital gains as part of this income. What we aim to do is to work out a formula that strikes a fair balance between the claims of present and future generations, because the financial security and spending needs of tomorrow are no less important than those of today.
5.25 But we cannot rely on Net Investment Income alone to cover everything that we need to spend on. Instead, we must use the additional income from our reserves to secure further improvements to our competitiveness, to make longer-term investments in infrastructure and R&D, and to top up the endowment funds that will bring value to Singaporeans for many years to come. This way, the NII will help to boost the growth of our economy over the long term. The increased expenditures that we will have to make on the social front over time should, therefore, be funded primarily by other revenues.
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