E1. Mr Speaker, Sir, let me now summarise the FY2011 budget position.
E2. After factoring in the various tax measures and significant special transfers in this year’s Budget, we expect a basic deficit of $2.2 billion for FY2011, or about 0.7% of GDP. This is slightly smaller than the FY2010 basic deficit of 0.8% of GDP.
E3. The Overall Budget Balance for FY2011 is projected to be a slight surplus of $0.1 billion. This is after taking into account, firstly, Net Investment Returns Contribution (NIRC) of $7.8 billion; and secondly, the amounts we are setting aside for Endowment and Trust Funds that serve both our economic and social objectives9. The injections into Endowment and Trust funds will alleviate pressure on future Government Budgets to fund our long-term needs.
9 Transfers to Endowment and Trust Funds total $5.5 billion. This includes $3.4 billion to support our longer-term social objectives in healthcare, continuing education, and help-schemes for the needy. It also includes $2.1 billion in investments for productivity and innovation, and measures to help the corporate sector.