MINISTRY OF FINANCE

BUDGET DIVISION

The Budget system will be improved.

To the Programme and Performance Budgeting, introduced in 1978, we shall add a financial management system to check on the carrying out of the 10-Year Economic and Social Development Plan. The Ministry of Finance will help each Ministry to set up its own Financial Management Information System (FMIS). The total system will (a) control and direct programmes and projects, (b) see if the policy and the operational and financial objectives and targets are being followed, (c) make any changes and modifications necessary to achieve this, and (d) in the large Ministries, computerise the large amounts of data in the FMIS for quick evaluation.

The Ministry of Finance will effect greater computerisation in the Civil Service. For this the Management Services Department of the Ministry will be strengthened so that it can better advise and assist other Ministries on the introduction and operation of computers. The Management Services Department will also provide more consultancy services on computerisation and management, data processing and information management.

REVENUE DIVISION

Monetary Policy

Our monetary policy will continue to be designed to help sustain economic growth. We shall permit such expansion of the money supply as to achieve a real growth of 8 - 10% per year for our economy.

We are reviewing the Insurance Act, which was introduced in January 1967. The insurance industry has grown in scale and depth in the last decade. The new law will recognise the changed needs and help meet the objective of developing Singapore into an important insurance centre. The Banking Act and the Finance Companies Act will likewise be reviewed.

A Gold Trading Act is being considered. It will provide for the licensing of companies trading in gold and gold futures to protect the public and to promote the orderly development of the market.

Taxation Policy

We shall continue to rely mainly on economic expansion for increased revenue to meet public expenditure. Our taxation policies will support economic and social policies.

Personal income tax rates will be reduced periodically in the next two to three years. There will be sufficient incentive for effort, enterprise and talent.

HON SUI SEN Minister for Finance