FINANCIAL PROCEDURE (AMENDMENT NO. 2) BILL

Order for Second Reading read.

7.56 p.m.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Minister for Finance has explained in his Budget Speech that Government's intention is to adopt a new financial year and explained the reasons for this change. At present, the financial year for budgetary purposes coincides with the calendar year and the Budget sitting is held in November or December each year to consider the Budget for the ensuing year. Our statistics on trade, industries, etc., are also based on the calendar year and are only available after the close of each calendar year. Hence such statistical data and useful aggregates such as the gross domestic expenditure are not available for the Budget sitting which takes place in November or December.

In presenting the Annual Budget, a review of the state of the economy for which these data are essential would be better made if the year for budgetary purposes be changed to close at 31st March of each year and that this be introduced from the next financial year which will then extend from 1st January, 1969, to 31st March, 1970. Our Budget sitting can then take place in March each year. This will give us January and February to study the statistical data of the previous calendar year.

The opportunity has been taken to clarify the power of the Minister in respect of the write-off of redundant stores. Although section 19 (a) of the Financial Procedure Act, 1966, enables the Minister for Finance to write off the value of lost, deficient, condemned, unserviceable or obsolete public stores, it does not provide for the disposal of stores on the ground that they are no longer required for the purpose for which they were originally purchased. Clause 3 of the Bill seeks to remedy this defect and to make clear the power of the Minister for Finance in respect of the write-off of redundant public stores.

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.-[MrTang See Chim].

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

8.00 p.m.

Mr Speaker: Order. Moment of interruption. It is 8 o'clock.