Singapore govt presents $8.14b interim budget

Singapore govt presents $8.14b interim budget

SINGAPORE (AFP): Singapore Finance Minister Richard Hu
presented to parliament yesterday an interim national budget for
1997 totaling S$11.4 billion (US$8.14 billion) amid uncertainty
over the date of the island state's next elections.

Hu said the budget for the April-August period was necessary
"only to provide the prime minister with flexibility" in setting
an election date.

Prime Minister Goh Chok Tong announced recently that he would
like the parliament to run its full term of five years ending
Jan. 5.

Under the law, a general election would have to be called
within three months -- by Apr. 5 -- which falls just beyond the
start of the 1997 financial year on Apr. 1.

Since it normally takes a new parliament about four months to
finalize a budget, an interim budget would be necessary for the
government to cover expenses after the new financial year starts.

Hu sought parliament's approval for the interim budget to
incorporate S$4.77 billion from a consolidated fund for operating
expenses, and the remaining S$6.63 billion from other funds set
aside for development projects and government statutory boards.

Debate on the interim budget is expected next week.

He said legislative authority to make payments and drawdowns
against the two funds would lapse on March 31, 1997.

The minister added that if the prime minister decided to defer
the holding of fresh elections until a date nearer Apr. 5,
approval of the full year's budget would correspondingly be
delayed until the middle or end of August 1997.

"Members (MPs) should not misunderstand the amount requested
under the vote on account to be a signal that the elections will
be held later (rather) than earlier," Hu told parliament Monday.
"This is only to provide the prime minister with flexibility
should he decide not to hold the elections earlier," he added.
Hu said his move was not unprecedented as a similar interim
budget was sought in 1961.

Explaining the rationale for the move, Hu said from past
experience, after the elections, about two months was needed for
the government to formulate its programs for the new term of
office and for parliament to debate on them.

Thereafter, there would be a break of one month before the
government presented its budget proposal to parliament. The whole
process would thus take a total of about four months.

"Even if the prime minister chooses to call for elections
immediately after the dissolution of parliament in the first week
of January 1997, the president's approval of the financial year
1997-1998 budget can only be obtained towards the middle or end
of May 1997," Hu said.

Except for four seats, the ruling People's Action Party (PAP)
controls the 81-member parliament. It is expected to win the
upcoming elections by a comfortable margin.