The federal budget of a country is determined yearly, and forecasts the amount of money that will be spent on a variety of expenses in the upcoming year. A balanced budget occurs when the total sum of money a government collects in a year is equal to the amount it spends on goods, services, and debt interest.
The budget in Singapore is prepared on a financial basis. The financial year (FY) for the Government is from 1st April of a given year to the 31st March of the following year. For e.g. FY2009 is from 1 April 2009 to 31 March 2010.
Before the FY starts, the Minister of Finance would present the annual Budget that has been approved by Cabinet to Parliament. This is followed by the Budget Debate and Committee of Supply sessions, where Members of Parliament can question the Government on the expenditure of funds during the previous FY, as well as the proposed Budget for the coming FY.
The aims of the budget are as follows:
- It records the approved levels of expenditure and accountability in the usage of government funds
- It is also a plan of the estimated government revenue and expenditure.
Annual Budget Cycle
- Budget Process
- Cabinet Approves the Budget
- Presentation of Budget to Parliament
- Committee of Supply Debates Budget
- Supply Bill Passed President's Assent Sought For Enactment Of Supply Bill
- President's Assent Given
- Supply Bill Enacted As Law