Change could boost govt coffers by $4b-$5b annually, says economist.
THE Government is moving to include up to half of long-term investment returns from investment company Temasek Holdings in the national financial accounts.
One expert has given a rough estimation that the move could add $4 billion to $5 billion a year to the Budget bottom line.
The Government will seek a constitutional amendment later this year allowing it to include Temasek as a contributor to its Net Investment Returns (NIR) framework as it prepares for more social and infrastructure spending.
The NIR framework was set up in 2009 to allow the Government to spend up to 50 per cent of the expected long-term real returns on its net assets managed by the Monetary Authority of Singapore (MAS) and GIC. These are both realised and unrealised capital gains - that is, future projected returns.
One expert has given a rough estimation that the move could add $4 billion to $5 billion a year to the Budget bottom line.
The Government will seek a constitutional amendment later this year allowing it to include Temasek as a contributor to its Net Investment Returns (NIR) framework as it prepares for more social and infrastructure spending.
The NIR framework was set up in 2009 to allow the Government to spend up to 50 per cent of the expected long-term real returns on its net assets managed by the Monetary Authority of Singapore (MAS) and GIC. These are both realised and unrealised capital gains - that is, future projected returns.
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