RAISING LIMIT DOES NOT AFFECT FISCAL POSITION
He also said that proceeds from the issuance of these securities are invested, and are not used to fund government spending.
“The government does not borrow for recurrent spending needs, so as not to overly burden our future generations who will have to service the debt incurred by current and previous generations,” he said.
The increase in the limit is not for spending purposes and does not impact the government’s fiscal position.
While other countries borrow to fund recurrent spending, Singapore only borrows to fund nationally significant infrastructure projects under the Significant Infrastructure Government Loan Act (SINGA).
The amount borrowed under SINGA makes up less than 2 per cent of the total amount the government borrows, and SINGA has a separate borrowing limit.
Mr Chee added that Singapore’s gross debt-to-GDP ratio may appear large, but it does not fully reflect the country’s financial position as it does not consider Singapore’s assets, which outweigh its debts.
