Singapore expects overall FY2011/12 budget surplus of $100m

Singapore expects to post an overall budget surplus of $100 million for the coming financial year ending March 31, 2012, helped by investment returns of about $7.8 billion, Finance Minister Tharman Shanmugaratnam said on Friday.

The government sees a basic deficit of $2.2 billion, or about 0.7% of gross domestic product, slightly smaller than the FY2010/11 basic deficit of 0.8% of GDP.

Singapore’s basic deficit is the difference between operating revenue and total expenditure, while the overall budget surplus or deficit takes into consideration investment returns and transfers to various funds.

Singapore’s finances are healthier than official numbers suggest as proceeds from land sales are put directly into reserves and not reflected as revenue in its annual budgets.