How the government turns a fiscal surplus into a deficit

Leong Mun Wai

To answer that we need to do a simple breakdown of all the total fiscal resources available to the Government for FY2021 and compared it to the total expenditures.

Most important to know is that there are three components which is the same as in previous years:

  1. The Operating Revenues collected through taxes and charges which amount to about $77 billion.
  2. Land Sales Receipts from the sales of the earmarked land parcels which amount to $12 billion.
  3. The Net Investment Return of $39 billion earned from the $1.35 trillion of total financial assets we own.

After summing up the three components, our total fiscal resources for FY2021 add up to $128 billion which would be available for Government deployment and allocation. The Government’s position, however, is that the Land Sales Receipts of $12 billion and half of the Net Investment Return of $19 billion (the second and third components of the fiscal resources available) cannot be counted in the Budget, so the fiscal revenue reported is only $96 billion (77 plus 19).

Compare this to our total fiscal expenditure for FY2021 of $107 billion. If all the $128 billion is included in the Budget, we will get a surplus of $21 billion (128 minus 107) but if we take the Government’s $96 billion, then we get a deficit of $11 billion (96 minus 107). So that is how the Government turns a surplus into a deficit.

We think that how the Government chooses to present the fiscal resources available to it (only Operating Revenue and half of Net Investment Returns) is separate from the fiscal resources actually available (all three components), which includes the aforementioned surplus. Hence my assertion in Parliament that I don’t see any shortage of fiscal resources in the foreseeable future.

The Government can choose to keep the surpluses if there is no need to raise taxes. If the Government want to raise taxes while keeping the surplus, then they have a lot of explanation to do.

Note: all the above figures are taken from The Revenue and Expenditure Estimates for FY2021 published by MOF

* Facebook post by PSP’s Leong Mun Wai.


5 Responses to “How the government turns a fiscal surplus into a deficit”

  • xoxo:

    Even cost-centres become REVENUE CENTRE$?



    GD Star Rating
  • Pay and Pay:

    Highly suspect that even ministers have no idea how much wealth the gov has. Remember 52 man-years just to list the wealth items during OTC time?

    Assuming this is the case, all the money “debate” is just nonsense. Similar to blind people debating how dinosaurs look like.

    Die die, pap simply wants us to pay and pay.

    Some ministers even give very stupid comparisons. One says gov land sales is similar to a family selling its house. Once sold, it’s gone.
    The minister forget that gov land sales is not permanent. It’s a lease. After some years, the land goes back to gov.

    Gov land in Sg is sold again, and again, and again. Better than an oil field.

    Even cost-centres become REVENUE CENTRE$?



    GD Star Rating
  • Harder Truths:

    None of the numbers are real anyway. There are just made up. No one really knows what is going on except the few at the top.

    The simplest and most direct explanation is there are no surpluses or Reserves. These have either disappeared or squandered. This leads to the conclusion that the regime needs to live off the citizen in direct and indirect ways. There is no escaping this logic, which is proven by events.

    No individual therefore owns anything in $G. Everything is owned by the regime. Including the individual.

    GD Star Rating
  • FGPAP trash tier quality:

    Notwithstanding the peabrain lineup of cabinet, it is not surprising of the financial positioning some one who has in mind privatization of the Govt of SIN that he premptd it bu using it as his cootlicking mean to get into the Finance ministry. Mun Wai has overlooked the ownself xxxx ownself factor which they have invoked to pocket themselves with hefty increase of their salaries wthin a short time after the pap pandemic crisis surviving election. However with the pronouncement of cotton sheep ed minister aka zero accountability except to his parents unlike his brownosed son of his dead n gone boss aka Amos horrible man which haunted Amos thru its NOT first tier compliant politico career bureaucrats under the cotton sheep zero accountability gorillagripped nfi son till Amos brilliant mind turned to erotic crime n deprivation. What comes next is the cootlicking seller of SiIN Govt imitaking his cootlicked client with millions $ bonus n salary increase. Simultaneously the school curriculum will turned tipsy with project on hunting and
    shearing cooton from the humkachan cotton sheep while the indianee will be turning to befriend with the white lynchers while condemning the bananas of all degree of ripeness for Plagiarising her white idols erotic conduct towards her banana heritage.

    Seat warming , farts ardent consumer will be all this while be wondering why his first tier schoolmates r shunning him n TCB is ungrateful to his lure into the dark den. Perhaps he hoped to go as his bigger goh used to advise himmthat if he has to go, he has to go before he is subject to Trumpic kind of karma. So Mun Wai, more pofma truths will surface while pofma fakes r being criminalized by the CB kowtowing to the NOT 1st tier FGRarists

    GD Star Rating
  • Comcare Support:

    The last lockdown round,many has missed or have little Comcare support .Too much red tape and regulation.
    They have suffered much for a long time.
    Hope this time ,more help will be given to those that really need it.
    Not those who know how to game the system.

    GD Star Rating
Member Services
Self-SupportMembers LoginSelf-Support
Sponsored Advertisement
Search On TR Emeritus
Sponsored Advertisement
Visitors Statistic
Latest Statistic