For the current financial year ending March 31, Sg is expecting a RECORD S$9.6 billion overall budget SURPLUS.
It is said to be due to “exceptional statutory board contributions” and higher-than-expected collections from stamp duties.
The surplus is more than 500% the initial estimate of around S$1.9 billion and a quarter higher than the previous record of about S$7.7 billion in FY2007.
Ladies and gentlemen, we need to understand the causes of the significant variance between budget and actual.
The accuracy of your budgeting and projection affects people on the street. Imagine you raise the GST by 2% on expectation of budget deficits in the coming years but it turns out otherwise. Ooopss the 2% increase in GST would have been institutionalised and therefore not easily reversible.
We all need to appreciate the gravity of the situation.
We hope to live “happily” ever after with GST of 9%.