atans1

Budget 2015: Did you know?

In Economy, Political governance on 07/08/2015 at 4:25 am

The International Monetary Fund notes, our budget surplus, as large as 8% of GDP in 2012, will shrink to less than 2% this year. Note that this “surplus” is the real surplus, as defined by internationally accepted norms, not the definition of the PAP administration.

To be far to the administration, I’m willing to accept the argument that the sale of public land should not be reflected as “current income”. It’s a sale of “capital”. But I also believe it shouldn’t be locked up in the reserves either.

 

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  1. Quite right, the budget position presented on Budget day should be seen as the equivalent of a corporation’s operating income. In fact the government called it the operating surplus / deficit. But that does not excuse the government from declaring the sale of land (capital) and the returns earned from investing CPF and other debt proceeds (investment income) as non-operating income as corporations do.

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