CONSTITUTION OF THE REPUBLIC OF SINGAPORE

PART XI

FINANCIAL PROVISIONS

Interpretation of this Part
142. —(1) In this Part, unless the context otherwise requires —

"Development Fund" means the Development Fund established by the Development Fund Act (Cap. 80);

"financial year" means a period of 12 months ending on 31st March in any year.

(1A) Notwithstanding clauses (1C) and (2), where —

(a) before the start of any financial year, the President, acting in his discretion, concurs with the advice of the Minister responsible for finance on the long-term real rates of return which are expected to be earned on the respective components of the relevant assets (referred to in this Article as the expected long-term real rates of return); and

(b) the Minister responsible for finance thereafter certifies under his hand to the President the spending limit for that financial year, specifying an amount which shall not be more than 50% of the total of all amounts ascertained by applying the expected long-term real rates of return so agreed under paragraph (a) for that financial year on the respective components of the relevant assets,

any reference in this Part to the reserves not accumulated by the Government during its current term of office shall exclude those reserves equal to the amount so certified.

(1B) Any provisional certificate on the spending limit for a financial year issued by the Minister responsible for finance under clause (1A)(b) at any time during the financial year shall have the same effect as if it is a final certificate on the spending limit for the financial year until it is superseded by the issue of the final certificate on the spending limit for that same financial year.

(1C) In addition to clause (2), the net investment income and realised capital gains that are —

(a) directly attributable to the relevant assets; and

(b) received by the Government during a financial year in any current term of office of the Government,

shall for the purposes of this Part accrete and be deemed to form part of the past reserves of the Government with effect from the date of the receipt thereof.

(2) For the purposes of this Part, where any net investment income is received during a financial year in any current term of office of the Government —

(a) such amount of the net investment income of the financial year that is derived from the past reserves of the Government as is certified under clause (3); or

(b) if no certificate under clause (3) is made, 50% of the net investment income of the financial year that is derived from the past reserves of the Government not comprised in the relevant assets,

shall accrete and be deemed to form part of the past reserves of the Government with effect from the date of the certificate relating to that financial year made under clause (3) or, if no such certificate is made or earlier made, from the date the accounts and statements referred to in Article 147 (5) for that financial year are presented to the President.

(3) The Minister responsible for finance shall, as soon as practicable after the end of FY 2000 and every subsequent financial year, certify to the President in a certificate relating to that financial year, the amount (not being less than 50%) of the net investment income of that financial year derived from the past reserves of the Government not comprised in the relevant assets which is to accrete and be deemed to form part of the past reserves of the Government; and such certificate shall be final and conclusive evidence of the amount.

(4) In this Article —

"FY 2000" means the financial year beginning on 1st April 2000 and ending on 31st March 2001;

"net investment income" , in relation to a financial year, means the balance of —

(a) the dividends, interest and other income received by the Government during the financial year from investing the reserves of the Government; and

(b) the interest received by the Government during the financial year from loans (whenever given) by the Government,

after deducting all expenses arising from or incidental to investing and managing those reserves (other than costs of purchasing or disposing of or converting investments) and any interest, sinking fund charges and borrowing charges, but excludes any such income or interest on loans received before the beginning of FY 2000;

"net investment income of a financial year that is derived from the past reserves" means the share of the net investment income of the financial year that is attributable to the past reserves;

"past reserves of the Government" means the reserves not accumulated by the Government during its current term of office, including accretions thereto deemed under clauses (1C) and (2) to be part thereof, but less such amount that is certified under clause (1A)( b) or such amount adjusted pro-rata based on the period a financial year falls partially within any current term of office of the Government;

"real rate of return" means an annual percentage of return on investment of relevant assets of the Government adjusted for changes in prices due to inflation or deflation and after deducting all expenses arising from or incidental to investing and managing the relevant assets;

"realised capital gains" , in relation to any relevant assets, means all proceeds realised from the disposition of the relevant assets less all costs and expenses arising from or incidental to the disposition, purchase or conversion of the relevant assets, and includes any realised capital losses;

"relevant assets" means all of the following:

(a) the total net assets managed by the Government of Singapore Investment Corporation Pte. Ltd. and all its wholly-owned subsidiaries (including those with registered offices outside Singapore) as fund managers for the Government, for any company wholly-owned by the Government and for all the wholly-owned subsidiaries of such a Government company;

(b) such moneys of the Government as the Monetary Authority of Singapore receives from the Government as banker to the Government; and

(c) the excess of the assets of the Monetary Authority of Singapore over its liabilities, being assets and liabilities not directly attributable to the Government, and being not already comprised in paragraph (b),

less the following liabilities:

(i) the total liabilities of the Government that is attributable to its borrowings under the Government Securities Act (Cap. 121A) and the Local Treasury Bills Act (Cap. 167); and

(ii) the total liabilities of the Government that is represented by any Government Fund (other than a Government Fund required by written law to be held, managed and administered separately from other Government funds) established by a public Act for special purposes and not already comprised in paragraph (i).

No taxation unless authorised by law
143. No tax or rate shall be levied by, or for the purposes of, Singapore except by or under the authority of law.

Restriction on loans, guarantees, etc.
144. —(1) No guarantee or loan shall be given or raised by the Government —

(a) except under the authority of any resolution of Parliament with which the President concurs;

(b) under the authority of any law to which this paragraph applies unless the President concurs with the giving or raising of such guarantee or loan; or

(2) The President, acting in his discretion, may withhold his assent to any Bill passed by Parliament providing, directly or indirectly, for the borrowing of money, the giving of any guarantee or the raising of any loan by the Government if, in the opinion of the President, the Bill is likely to draw on the reserves of the Government which were not accumulated by the Government during its current term of office.

(3) Clause (1) (b) shall apply to the following laws:

(a) the Asian Development Bank Act (Cap. 15);

(b) the Bretton Woods Agreements Act (Cap. 27);

(d) the External Loans Act (Cap. 102);

(e) the Financial Procedure Act (Cap. 109);

(f) the International Development Association Act (Cap. 144A);

(g) the International Finance Corporation Act (Cap. 144);

(h) the Jurong Town Corporation Act (Cap. 150); and

(i) the Loans (International Banks) Act (Cap. 164).

Consolidated Fund
145. There shall be in and for Singapore a Consolidated Fund into which, subject to the provisions of any law for the time being in force in Singapore, shall be paid all revenues of Singapore not allocated to specific purposes by any written law.

Withdrawal from Consolidated Fund, etc.
146. —(1) No moneys shall be withdrawn from the Consolidated Fund unless they are —

(a) charged on the Consolidated Fund;

(b) authorised to be issued by a Supply law, Supplementary Supply law or Final Supply law;

(d) authorised to be issued by the Minister responsible for finance under Article 148B (4).

(2) No moneys shall be withdrawn from the Consolidated Fund except in the manner provided by law.

(3) Clause (1) shall not apply to any such sums as are mentioned in Article 147 (2) (b) (i), (ii) or (iii).

(4) No moneys in the Development Fund shall be withdrawn —

(a) except for any one or more purposes specified in any written law, being purposes necessary or related to the development of Singapore; and

(b) unless authorised to be issued by a Supply law, Supplementary Supply law or Final Supply law or by the Minister responsible for finance under Article 148B (4).

Annual estimates and financial statements
147. —(1) The Minister responsible for finance shall, before the end of each financial year, cause to be prepared annual estimates of revenue and expenditure of Singapore during the succeeding financial year which, when approved by the Cabinet, shall be presented to Parliament.

(2) The estimates of expenditure shall show separately —

(a) the total sums required to meet expenditure charged on the Consolidated Fund;

(b) the sums respectively required to meet the heads of other expenditure for the public services proposed to be met from the Consolidated Fund, except the following sums:

(i) sums representing the proceeds of any loan raised by the Government for specific purposes and appropriated for those purposes by the law authorising the raising of the loan;

(ii) sums representing any money or interest on money received by the Government subject to a trust and to be applied in accordance with the terms of the trust; and

(iii) sums representing any money held by the Government which has been received or appropriated for the purpose of any trust fund established by or in accordance with any written law; and

(3) The estimates of revenue to be shown in the estimates shall not include any sums received by way of zakat, fitrah and baitulmal or similar Muslim revenue.

(4) The Minister responsible for finance shall also present to Parliament together with the estimates of revenue and expenditure —

(a) a statement whether the annual estimates of revenue and expenditure is likely to draw on the reserves which were not accumulated by the Government during its current term of office; and

(b) an audited statement showing as far as practicable the assets and liabilities of Singapore at the end of the last completed financial year.

(5) The Minister responsible for finance shall, as soon as practicable after the end of every financial year, prepare in respect of that year —

(a) in relation to accounts maintained in respect of the Consolidated Fund, a full and particular account showing the amounts actually received and spent in that year, and a full and particular statement showing receipts and expenditure of any loan moneys;

(b) a statement of receipts and expenditure of moneys accounted in the Development Fund Account;

(d) so far as is practicable, a statement of the assets and liabilities of Singapore at the end of the financial year;

(e) so far as is practicable, a statement of outstanding guarantees and other financial liabilities of Singapore at the end of the financial year; and

(f) such other statements as the Minister may think fit,

and, after the accounts and statements referred to in this clause have been audited, present to the President those audited accounts and statements together with another statement stating whether the audited accounts and statements referred to in this clause show any drawing on or likelihood of drawing on the reserves of the Government which were not accumulated by the Government during its current term of office.

Authorisation of expenditure from Consolidated Fund and Development Fund
148. —(1) The heads of expenditure to be met from the Consolidated Fund and Development Fund (other than statutory expenditure and expenditure to be met by such sums as are mentioned in Article 147 (2) (b) (i), (ii) or (iii)) shall be included in a Bill to be known as a Supply Bill, providing for the issue from the Consolidated Fund and Development Fund of the sums necessary to meet that expenditure and the appropriation of those sums for the purposes specified therein.

(2) Wherever —

(a) any moneys are expended or are likely to be expended in any financial year upon any service or purpose which are in excess of the sum provided for that service or purpose by the Supply law relating to that year; or

(b) any moneys are expended or are likely to be expended (otherwise than by way of statutory expenditure) in any financial year upon any new service or purpose not provided for by the Supply law relating to that year,

supplementary estimates (or, as the case may be, statements of excess) shall be prepared by the Minister responsible for finance and, when approved by the Cabinet, shall be presented to and voted on by Parliament; in respect of all supplementary expenditure so voted, the Minister responsible for finance may, at any time before the end of the financial year, introduce into Parliament a Supplementary Supply Bill containing, under appropriate heads, the estimated sums so voted and shall, as soon as possible after the end of each financial year, introduce into Parliament a Final Supply Bill containing any such sums which have not yet been included in any Supply Bill.

(2A) The Minister responsible for finance shall, in presenting to Parliament any supplementary estimates or statement of excess under clause (2), also present a statement stating whether the supplementary estimates or statement of excess, as the case may be, is likely to draw on the reserves which were not accumulated by the Government during its current term of office.

(3) The part of any estimates of expenditure presented to Parliament which shows statutory expenditure shall not be voted on by Parliament, and such expenditure shall, without further authority of Parliament, be paid out of the Consolidated Fund.

(4) For the purposes of this Article, “statutory expenditure” means expenditure charged on the Consolidated Fund or on the general revenues and assets of Singapore by virtue of Articles 18, 22J (3), 35 (10), 41, 42 (3), 108 (1), 114, 148E and 148F (4) or by virtue of the provisions of any other law for the time being in force in Singapore.

Withholding of assent to Supply Bill, etc.
148A. —(1) The President may, acting in his discretion, withhold his assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill for any financial year if, in his opinion, the estimates of revenue and expenditure for that year, the supplementary estimates or the statement of excess, as the case may be, are likely to lead to a drawing on the reserves which were not accumulated by the Government during its current term of office, except that if the President assents to any such Bill notwithstanding his opinion that the estimates, supplementary estimates or statement of excess are likely to lead to a drawing on those reserves, the President shall state his opinion in writing addressed to the Speaker and shall cause his opinion to be published in the Gazette.

(2) If the President withholds his assent to any Supply Bill, Supplementary Supply Bill or Final Supply Bill relating to any financial year and no resolution to overrule the President is passed by Parliament under Article 148D within 30 days of such withholding of assent, Parliament may by resolution authorise expenditure or supplementary expenditure, as the case may be, (not otherwise authorised by law) from the Consolidated Fund and Development Fund during that financial year:

Provided that —

(a) where the President withholds his assent to a Supply Bill, the expenditure so authorised for any service or purpose for that financial year (which shall include any amount authorised under Article 148B (4)) shall not exceed the total amount appropriated for that service or purpose in the preceding financial year; or

(b) where the President withholds his assent to a Supplementary Supply Bill or Final Supply Bill, the expenditure so authorised for any service or purpose shall not exceed the amount necessary to replace an amount advanced from any Contingencies Fund under Article 148C (1) for that service or purpose.

(3) For the purposes of paragraph (a) of the proviso to clause (2), the total amount appropriated for any service or purpose in any financial year shall be ascertained by adding the sums appropriated for such service or purpose by the Supply law, Supplementary Supply law and Final Supply law (if any) for that financial year.

(3A) Upon the passing of a resolution under clause (2), the Minister responsible for finance shall introduce in Parliament a Supply Bill, Supplementary Supply Bill or Final Supply Bill, as the case may be, containing, under appropriate heads, the sums so voted on by Parliament.

(4) In forming his opinion under clause (1) in relation to any Supplementary Supply Bill or Final Supply Bill, the President shall not have regard to any amount for any service or purpose included in the Supplementary Supply Bill or Final Supply Bill which is to replace any amount advanced from any Contingencies Fund under Article 148C (1).

(5) For the purposes of this Article and Article 148D, where, on the expiration of 30 days after a Supply Bill, Supplementary Supply Bill or Final Supply Bill has been presented to the President for his assent, the President has not signified the withholding of his assent to the Bill, the President shall be deemed to have given his assent to the Bill and the date of such assent shall be deemed to be the day immediately following the expiration of the said 30 days.

Power to authorise expenditure on account, etc., or for unspecified purposes
148B. —(1) Subject to clause (3), Parliament may, by resolution approving estimates containing a vote on account, authorise expenditure for part of any year before the passing of the Supply law for that year, but the aggregate sums so voted shall be included under the appropriate heads, in the Supply law for that year.

(2) Subject to clause (3), Parliament may, by resolution approving a vote of credit, authorise expenditure for the whole or part of the year, otherwise than in accordance with Articles 147 and 148, if, owing to the magnitude or indefinite character of any service or to circumstances of unusual urgency, it appears to Parliament desirable to do so.

(3) No resolution of Parliament made under clause (1) or (2) shall have effect unless the President, acting in his discretion, concurs therewith.

(4) If no Supply Bill has become law by the first day of the financial year to which it relates (whether by reason of the President withholding his assent thereto or otherwise), the Minister responsible for finance may, with the prior approval of the Cabinet, authorise such expenditure (not otherwise authorised by law) from the Consolidated Fund, Development Fund or other Government fund as he may consider essential for the continuance of the public services or any purpose of development shown in the estimates until there is a supply law for that financial year:

Provided that the expenditure so authorised for any service or purpose shall not exceed one-quarter of the amount voted for that service or purpose in the Supply law for the preceding financial year.

Contingencies Funds
148C. —(1) The Legislature may by law create a Contingencies Fund each for the Consolidated Fund and for the Development Fund and authorise the Minister responsible for finance to make advances from the appropriate Contingencies Fund if —

(a) he is satisfied that there is an urgent and unforeseen need for expenditure for which no provision or no sufficient provision has been made by a Supply law; and

(b) the President, acting in his discretion, concurs with the making of such advances.

(2) Where any advance is made by virtue of the authority conferred under clause (1), a supplementary estimate of the sum required to replace the amount so advanced shall, as soon as practicable, be presented to and voted on by Parliament and the sum shall be included in a Supplementary Supply Bill or Final Supply Bill.

(3) If the Minister responsible for finance intends to make any advance from a Contingencies Fund, he shall present to the President a statement stating whether the proposed advance, if replaced, is likely to draw on the reserves which were not accumulated by the Government during its current term of office.

(4) The President may, acting in his discretion, refuse to concur with the making of an advance from a Contingencies Fund which in his opinion, if replaced, is likely to draw on the reserves which were not accumulated by the Government during its current term of office.

Parliament may overrule President’s withholding of assent to Supply Bill, etc.
148D. —(1) Where the President withholds his assent under Article 148A to any Supply Bill, Supplementary Supply Bill or Final Supply Bill relating to any financial year contrary to the recommendation of the Council of Presidential Advisers, Parliament may by resolution passed by not less than two-thirds of the total number of the elected Members of Parliament referred to in Article 39 (1) (a) overrule the decision of the President.

(2) Upon the passing of a resolution under clause (1), the assent of the President shall be deemed to have been given on the date of the passing of such resolution.

Debt charges and moneys required to satisfy judgments
148E. —(1) The following are hereby charged on the Consolidated Fund:

(a) all debt charges for which the Government is liable; and

(b) any moneys required to satisfy any judgment, decision or award against the Government by any court or tribunal.

(2) For the purposes of this Article, “debt charges” includes interest, sinking fund charges, repayment or amortisation of debt and all expenditure in connection with the raising of loans on the security of the Consolidated Fund and the service and redemption of debt created thereby.

Appointment of Auditor-General
148F. —(1) There shall be an Auditor-General who shall be appointed or re-appointed, as the case may be, by the President in accordance with the advice of the Prime Minister unless the President, acting in his discretion, does not concur with that advice.

(2) The Prime Minister shall, before tendering any advice under clause (1), consult the Chairman of the Public Service Commission.

(3) It shall be the duty of the Auditor-General to audit and report on the accounts of all departments and offices of the Government, the Public Service Commission, the Legal Service Commission, the Supreme Court, all subordinate courts and Parliament.

(4) The Auditor-General shall perform such other duties and exercise such other powers in relation to the accounts of the Government and accounts of other public authorities and other bodies administering public funds as may be prescribed by or under any written law.

(5) Subject to clauses (7) and (8), the Auditor-General shall hold office for a term of 6 years and shall cease to hold that office at the end of that term, but without prejudice to his eligibility for re-appointment for further terms of 6 years each.

(6) Deleted by Act 2/2001, wef 02/08/2001.

(7) The Auditor-General may at any time resign his office by writing under his hand addressed to the President.

(8) The Auditor-General may be removed from office by the President, if the President concurs with the advice of the Prime Minister, but the Prime Minister shall not tender such advice except for inability of the Auditor-General to discharge the functions of his office (whether arising from infirmity of body or mind or any other cause) or for misbehaviour and except with the concurrence of a tribunal consisting of the Chief Justice and 2 other Judges of the Supreme Court nominated for that purpose by the Chief Justice.

(9) The tribunal constituted under clause (8) shall regulate its own procedure and may make rules for that purpose.

(10) Parliament shall by resolution provide for the remuneration of the Auditor-General and the remuneration so provided shall be charged on the Consolidated Fund.

(11) The remuneration and other terms of service of the Auditor-General shall not be altered to his disadvantage during his continuance in office.

Duty to inform President of certain transactions
148G. —(1) It shall be the duty of the Auditor-General and the Accountant-General to inform the President of any proposed transaction by the Government which to their knowledge is likely to draw on the reserves of the Government which were not accumulated by the Government during its current term of office.

(2) Where the President has been so informed under clause (1) of any such proposed transaction, the President, acting in his discretion, may disapprove the proposed transaction.

(3) Where the President does not disapprove of any proposed transaction under clause (2) even though he is of the opinion that the proposed transaction is likely to draw on the reserves of the Government which were not accumulated by the Government during its current term of office, the President shall cause his decision and opinion to be published in the Gazette.

Publication of President’s opinion regarding certain liabilities of the Government
148H. Where the President considers that certain liabilities of the Government, though not requiring his approval, are likely to draw on the reserves of the Government which were not accumulated by the Government during its current term of office, he shall state his opinion in writing to the Prime Minister and shall cause the opinion to be published in the Gazette.

Transfer of Government’s past reserves
148I. —(1) Notwithstanding any provision in this Part, a proposed transfer or transfer (whether by or under any written law or otherwise) by the Government of any of its reserves to —

(a) a Government company specified in Part II of the Fifth Schedule (referred to in this clause and clause (2) as the transferee company); or

(b) a statutory board specified in Part I of the Fifth Schedule (referred to in this clause and clause (2) as the transferee board),

shall not be taken into account in determining whether the reserves accumulated by the Government before its current term of office are likely to be or have been drawn on if —

(i) in the case of a proposed transfer or transfer of reserves by the Government to a transferee company — the board of directors of the transferee company by resolution resolves that those reserves of the Government shall be added to the reserves accumulated by the transferee company before the current term of office of the Government; or

(ii) in the case of a proposed transfer or transfer of reserves by the Government to a transferee board — the transferee board by resolution resolves, or any written law provides, that those reserves of the Government shall be added to the reserves accumulated by the transferee board before the current term of office of the Government.

(2) Any reserves transferred by the Government together with or under any undertaking, resolution or written law referred to in clause (1) shall be deemed to form part of the reserves accumulated by the transferee company or (as the case may be) transferee board before the current term of office of the Government as follows:

(a) where the Supply Bill for any financial year provides for the proposed transfer of reserves and the Supply Bill is assented to by the President — at the beginning of that financial year;

(b) where a Supplementary Supply Bill provides for the proposed transfer and the Bill is assented to by the President — on the date of such assent by the President; or