EXPENDITURE POLICY

Government's policy is to continue to support the private sector as the engine of growth. The public sector will be kept lean and trim to free more manpower and financial resources for the private sector.

Government's expenditure will focus on basic public services and in areas which yield lasting returns. These are education, basic healthcare, infrastructure, housing and environmental protection. More emphasis will also be given to the arts, sports, recreation and programmes to enhance the quality of life in Singapore.

Government will contain operating and development expenditures at a level that can be financed by operating revenue. Surpluses would be accumulated in good years as a buffer against periods of economic downturn.