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.