Take this quiz to test what you know about the Budget process and the changes in the latest financial year.
- The government’s financial year used to follow the calendar year (January — December). When was the shift to the financial year spanning April 1 — March 31 announced?
- 1965
- 1968
- 1986
- 1997
Reveal Answer
Answer: B
Explanation: Former finance minister Dr Goh Keng Swee announced the change in 1968. The change was to allow time for assessing the statistic aggregates made in the calendar year passed, such as records of foreign trade and national income, and calculations of payment balances. That would give a better picture of how the economy did in the previous year. As a result, FY 1969 lasted an additional three months, and no Budget Statement was delivered in 1969.
This also explains why public officers who are more involved in Budget-related work get much busier during the first three months of the calendar year.
- Time to allocate funds! What performance indicators must be considered?
- Qualitative performance indicators
- Quantitative performance indicators
- Both of the above
- None of the above
Reveal Answer
Answer: C
Explanation: Quantitative indicators provide a measurable and comparable basis for evaluating an agency’s programmes, while qualitative indicators provide greater insight into outcomes that are difficult to measure.
Using the Ministry of Health as an example,
-
Quantitative indicators: waiting times, bed occupancy rates
-
Qualitative indicators: citizen satisfaction with public hospitals and polyclinics (from surveys)
- Where does most of the government’s operating revenue come from?
- Goods and services tax
- Corporate income tax
- Personal income tax
- Property tax
Reveal Answer
Answer: B
Explanation: About half of the government’s operating revenue comes from corporate income tax, personal income tax and goods and services tax.
FY 2017 saw a big jump in statutory board contributions, but this was mainly due to an unusually large contribution from the Monetary Authority of Singapore. This is unlikely to occur in future years. Statutory board contributions are still one of the smaller streams of government revenue.
The government’s revenue is supplemented with investment returns of the reserves through the Net Investment Returns Contribution, which is now the single largest contributor to the government’s overall revenue.
- Which sector’s government expenditure increased the most in the last few years?
- Social development
- Economic development
- Government administration
- Security and external relations
Reveal Answer
Answer: A
Explanation: The total expenditure for the social development sector has seen the greatest increase since FY 2011. The major cause: healthcare expenditure. Singapore has more than doubled its healthcare spending from $3.9 billion in FY 2011 to an estimated $10.2 billion in FY 2018. This increase went into building and operating more hospitals and other healthcare facilities, and enhancing healthcare subsidies.
- What purpose(s) does/do the reserves serve?
- As a strategic resource in times of crisis
- To maintain stability of the Singapore dollar
- To generate a stream of revenue for government spending
- All of the above
Reveal Answer
Answer: D
Explanation: Singapore’s reserves are a critical resource for these purposes:
- In times of crises, the reserves are a key defence for Singapore. We cannot tell what kinds of crises — natural calamities, geo-political disorders or financial crises — will hit us in future. Our reserves would enable us to respond effectively and decisively in a crisis.
- During the 1997 Asian financial crisis, our reserves and strong economic fundamentals kept the Singapore dollar stable even as currency speculators were attacking other regional currencies.
- The investment of our reserves provides a valuable stream of income for the government Budget, which can be spent or invested to meet immediate needs, future needs of the current generation of Singaporeans and the interests of our future generations.
For more explanations to the answers in this quiz, visit the Ministry of Finance Budget microsite.