FINANCIAL PROCEDURE (AMENDMENT) BILL

Order for Second Reading read.

3.48 p.m.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

In the light of the working of the Financial Procedure Ordinance, No. 39, of 1959, since its coming into operation on the 31st July, 1959, it has been found that subsection (5) of section 16 leads to practical difficulties. That subsection is worded to provide that warrants issued in respect of one financial year shall lapse at the end of the year. This is in order for warrants such as the General Warrant authorising approval to spend money in the Estimates. But for certain other types of warrants, it is not practicable. This is because in practice it is not possible to close the State's Account on the last day of the year. Invoices for the year and statements of account from overseas administrations and agencies come in later. It becomes, therefore, necessary to issue warrants to the following year to enable the closing of the previous year's accounts.

Sir, the purpose of this Bill is to enable the necessary warrants to be issued retrospectively to effect financial adjustments to this Account.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill.-[Dr Goh Keng Swee].

Bill considered in Committee; reported without amendment; read the Third time and passed.