GOVERNMENT SECURITIES (AMENDMENT) BILL

GOVERNMENT SECURITIES (AMENDMENT) BILL: Order for Second Reading read.

The Minister of State for Finance (Mrs Lim Hwee Hua): Sir, I beg to move, "That theBill be now read a Second time."

The Bill before the House seeks to amend the Government Securities Act to change the borrowing limit from a gross basis to a revolving basis.

Currently, the borrowing limit under the Government Securities Act refers to the gross sum of all Government securities issued, regardless of whether they have been redeemed. The intention is to amend the Act to change the borrowing limit from a gross limit to a revolving limit, which will be based on the amount of securities outstanding. This is a more meaningful measure of Government’s outstanding liabilities and is consistent with the borrowing limit for treasury bills in the Local Treasury Bills Act, which is on a revolving limit.

The key provision of the Bill is in clause 2, which amends section 11 to provide that the borrowing limit refers to the aggregate amount borrowed and outstanding.

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. - [Mrs Lim Hwee Hua].

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