TRYING to ‘level up’ is what this blog aims to achieve. So, what’s up with land sales revenue?
You must have called heard a thousand times, a good G plans for the future, not just the present.
According to factually, land sales revenue is not part of the revenue that G can spend. Under the Constitution, State land and revenues from land sales form part of Singapore’s Past Reserves – which are invested.
This avoids a situation where the G of the day (popular term of late ;)) sells land just so that they can meet their expenditure needs. Comparing this to Hong Kong, HK has been including land sales in current budget and with that, the country will not be able to properly plan the revenue from year to year.
What Singapore does is by taking the proceeds from land sales, place them in reserves and also invest them. When we reclaim land, engage in land acquisition or explore underground space, we use monies from reserves to fund them. As for investments, up to 50% of net investment returns on our Reserves can be included in the Budget for spending. This amount is reflected in the Budget Statement as Net Investment Returns Contribution.
Since 2003, reserves have been used to fund 23 projects for land reclamation and 32 projects for land acquisition.
Being prudent, planning ahead, isn’t this bread and butter of a small country?
Give us a like at our Facebook page: https://www.facebook.com/RiseofTheStrawberryNation/