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S'pore to amend Constitution to draw more income from reserves

DerekLeung

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Loyal
S'pore to amend Constitution to draw more income from reserves
By Ng Baoying, Channel NewsAsia | Posted: 15 September 2008 1756 hrs


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SINGAPORE: The government wants to increase the amount of income it can spend from investing Singapore's reserves.

This requires an amendment to the Constitution, which was tabled in Parliament on Monday.

Singapore's aging population means higher social spending in future. Coupled with plans to develop the country's capacity and overall competitiveness, it means government expenditure is going up.

Part of this extra spending is being funded by the Goods and Services Tax, which was raised from 5 per cent to 7 per cent last July.

But to preserve a competitive tax environment, the government has said that raising taxes is not the preferred option.

So it is now looking at other ways, such as what it can use from the country's investment income.

This follows studies on how large state funds in other countries operate.

Currently, the government can spend up to 50 per cent of actual interest and dividend income gained from investing Singapore's reserves.

This spending rule is meant to safeguard the country's reserves.

The government now wants to expand the pool of investment returns to include capital gains and losses, while maintaining the 50 per cent spending cap.

It will look at total returns on a long-term expected basis, over 15-20 years, to avoid inherent volatility of actual capital gains and losses.

Inflation will also be taken in account.

The proposed new framework will apply to assets managed by the Government of Singapore Investment Corporation (GIC) and those owned by the Monetary Authority of Singapore (MAS).

Other assets, which include Temasek Holdings, will still use the existing formula.

The idea of redefining the income that the government could spend from investing Singapore's reserves was first mentioned in Budget 2007 and again in Budget 2008.

The Finance Minister is expected to elaborate further on this amendment later in the year.

If the amendment to the Constitution is passed, the changes will take effect at the next Budget in 2009.​
 

ahbengsong

Alfrescian
Loyal
Spending on capital gains is like living on speculated paper money unless one liquidates the asset.... its a dangerous game the pap is playing now...
 

The_Latest_H

Alfrescian
Loyal
Spending on capital gains is like living on speculated paper money unless one liquidates the asset.... its a dangerous game the pap is playing now...

I agree. That's why I'm not coming back to pay taxes in order to fund Ho Ching's bad spending habits. To see my money and future CPF- if I do return- be squandered sickens me to the maximum. I'd rather pay my taxes to Kevin Rudd and Colin Barnett(the new WA premier), than to Ho Ching.
 

zhihau

Super Moderator
SuperMod
Asset
If the amendment to the Constitution is passed, the changes will take effect at the next Budget in 2009.

you know what strikes me? there's no opposing force to stop the Government from pushing forward in anything that they want to do.

you know why? they can easily obtain the 2/3 majority during any vote for the bills to be passed.

easily over 90% of the Parliamentary seats belongs to the PAP :eek:

ho seh liao~ huat ah~ :biggrin:
 

makapaaa

Alfrescian (Inf)
Asset
"Other assets, which include Temasek Holdings, will still use the existing formula. "

Why? Cos Temasick is just an empty shell now?
 

makapaaa

Alfrescian (Inf)
Asset
"Singapore's aging population means higher social spending in future. Coupled with plans to develop the country's capacity and overall competitiveness, it means government expenditure is going up. "

Only the 66% coolie rice bowlers believe in this b.s. It's just leegalizing the use of Sporns' blood and coffin $ to cover Ho Jinx's chao tar kar chng from her massive punting losses!
 

makapaaa

Alfrescian (Inf)
Asset
Bro,

That little, fat, black dog has gone to his front gate to count the number of treasure chests that was brought to his house..
mad2.gif

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Hey! Hey! Hey! Watch your words! I smack your face with prata with egg then u know! *hee*hee*
 

makapaaa

Alfrescian (Inf)
Asset
is his face photoshoped?

despite his age, he still got good complextion leh....

maybe too much bird's nest

th_President_of_Singapore_SR_Nathan.jpg


The Emperor awarded me the unused pints whenever he goes for his regular transfusion of blood from virgins. Very effective, u know? *hee*hee*
 

SIFU

Alfrescian
Loyal
it is equivalent to an admission that ho jinx has lost too much $$ on her shopping..:mad:

our CPF $$ all gone.. very soon they will think of new ways to squeeze more $$ from us..:mad:
 
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