SINGAPORE: The Singapore government said it expects a budget deficit of S$2.2 billion for FY2011, or 0.7 per cent of GDP.
This is after factoring in the various tax measures and special transfers in this year’s budget.
This is smaller than the FY2010 deficit of 0.8 per cent of GDP.
Finance Minister Tharman Shanmugaratnam said in his budget speech the overall budget balance for FY2011 is projected to be a slight surplus of S$100 million.
This is after taking into account Net Investment Returns Contribution (NIRC) of S$7.8 billion and the amounts the government is setting aside for endowment and trust funds to serve economic and social objectives.
Mr Tharman said the injections into the funds will alleviate pressure on future government budgets to fund the country’s long-term needs.