FINANCIAL PROCEDURE (AMENDMENT) BILL

Order for Second Reading read.

4.05 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."

The Financial Procedure Act, as it now stands, does not enable Parliament to approve expenditure for extraordinary or unspecified purposes. In Britain and a number of Commonwealth countries including India, Pakistan and Malaysia, there is provision for the approval of expenditure which on account of the magnitude or indefinite character of the service cannot be stated with the details given, as in ordinary estimates of expenditure.

In the United Kingdom, such needs for expenditure are brought before Parliament by an application based on the estimate of the total sum required for a vote of credit. The form of a vote of credit is a demand for a lump sum with the objects stated in very general terms. It is accounted for by the Treasury which issues monies to the departments in accordance with their requirements. Recourse to these procedures takes place only in exceptional times.

Nevertheless, no one can say that they will never be necessary, and it is prudent that we make provision for all eventualities as other Commonwealth countries have done.

The necessary amendments to the Constitution have been brought to the House under the Constitution (Amendment) Bill. The proposed amendment to the Financial Procedure Act is complementary to the amendments to the Constitution to enable Parliament to approve expenditure for extraordinary or unspecified purposes.

Sir, I beg to move.

Question put, and agreed to.

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

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

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