Deputy Prime Minister and Minister of Finance, Huang Xuncai, will issue a fiscal budget statement on fiscal 2024 on February 16.President Shangdaman and members of the Presidential Consultant Council on January 8 listened to the complete reports of Huang Xuncai and the Ministry of Finance, as well as the Singapore Government Investment Corporation (GIC), the Singapore Financial Administration and Temasek.Prediction of long -term actual return on government investment.Reporting to the president is a necessary procedure. The president must agree to the prediction to approve the government's use of the expected reserve investment income as part of the expenditure.
As pointed out by Shang Damman, Singapore's most unique part is that we can get a considerable amount of funds from the national reserve every year for the people.Singapore is also the only country in the world that does not produce oil, but can benefit from reserves in this way.
What he refers to the reserves of reserves return contributions (NIRC for short).This is a long -term estimation based on the possible return of reserve investment.At present, the government can allocate half of NIRC into the national budget each year, and the other half must be put back to the reserve to continue investing.
Over the years, NIRC has become one of Singapore's annual fiscal revenue, accounting for 20%of total fiscal revenue.In terms of actual amount, it was more than 21.6 billion yuan in fiscal 2022.The budget of 2023 reached 23.48 billion yuan, an increase of about 8.7%over the previous year.
Comparison with the government's various taxes, NIRC in fiscal 2022 is second only to the company's tax (22.7 billion yuan), but far exceeding personal income tax (15.3 billion yuan) and consumption tax (14.4 billion yuan).The national reserve is undoubtedly an extremely important strategic asset in Singapore, which can be metaphorized to a geese that can only get golden eggs.We must raise this goose to benefit each generation of Singaporeans.
Singapore's fiscal policy has always adhered to the cautious principle of quantitatively, but in recent years, due to the acceleration of population aging and inflation, social development expenditure has increased year by year. From the annual budget, if it is missing from NIRC, this article is missing from NIRC.Income, tax alone is not enough to maintain balance balance.Premier Li Xianlong pointed out when he was interviewed by the new media Asian News from last year that if there was no NIRC, the government had to fill the difference from 9 % to 19 %, or doubled corporate tax, or increased personal income tax on personal income taxMore than double.This type of tax rate is constantly increasing, which will inevitably affect Singapore's overall competitiveness.
Singapore has been able to maintain a balanced income and expenditure and fiscal surplus for many years, and has formed a strong comparison with the fiscal fiscal in many countries.The finances of many countries are actually from black to red.The state treasury was originally full, but due to improper policy, deficits often appeared in the food. In the end, the debt must be raised.
Singapore's finances are just the opposite, which can obtain a virtuous circle of money.But this can not help some political pressure.For example, the consumption tax increased by a one percentage point last year and this year, and the opposition questioned why they could not use more investment in return, and they must insist on using only 50 %.The temptation of using more money will always exist.But as the Prime Minister pointed out, it turns out that this ratio is right, because if we continue to do so, our income is sustainable.In the long run, our investment portfolio should be able to grow up with the GDP.Five or five pairs can also play a certain psychological role. This generation takes half of it, and the other half is left to the next generation. This is a very reasonable approach.
To be precise, this is also a way to ensure sustainability. On the one hand, it is to adhere to the financial discipline of the past few decades, and on the other hand, to ensure that the economy can achieve moderate growth, so that it can increase taxes and some and have some.The fiscal surplus enters the reserve to increase its interest.Secondly, when NIRC becomes the main income of the government, it is also more important to ensure that the reserves can obtain considerable investment in return.This means that the GIC, HKMA and Temasek, which are responsible for the investment of reserve, must be able to get good and effective management to ensure that gold and goose can get eggs every year.
