Treatment for Recurrent Spending When Expensed as Development Expenditure Versus as Part of Ongoing Expenditure
06 Feb 2023Parliamentary Question by Assoc Prof Jamus Jerome Lim:
To ask the Deputy Prime Minister and Minister for Finance whether the Ministry follows any protocol when recurrent spending is expensed as part of development expenditure from designated development funds versus when it is expensed directly as part of ongoing expenditures.
Parliamentary Reply by Deputy Prime Minister, and Minister for Finance Mr Lawrence Wong:
As and when necessary, the Government allocates moneys from the Budget to specific Funds to meet our various expenditure commitments. We do this for specific areas of spending where a significant amount of long-term funding is required, like R&D, coastal protection, or major development projects, and it would be prudent to save and set aside moneys into these Funds from time to time, when the Budget permits.
Accounting-wise, allocations into these Funds are expensed in the same manner as direct expenditures from the Government. The annual expenditures from the Funds are audited and reported in either the Government Financial Statements or the relevant Statutory Boards’ Financial Statements, and these statements are presented to Parliament.