Quote:Pecuniary interest? Also, allow me to use an analogy to illustrate a possible issue – Let’s say my bonus depends on GDP growth. I use the Reserves to reclaim land and SERS. So, in essence I may be pumping money into the economy (kind of like “Quantitative Easing” (QE) (For further reading: 2009-13 QE bubble)). In so doing, am I not in a way increasing GDP and thus indirectly my bonus too? Under reporting Budget expenditure? Let’s try to explore the use of the Reserves further. When land is reclaimed, we may be increasing GDP, and under reporting on the Budget expenditure, because if not for the use of the Reserves, the land reclamation expenditure may reduce the Budget surplus or even result in a Budget deficit. After the land is reclaimed and sold to perhaps the highest bidder (including the HDB?), the land sales proceeds are not reported as Budget revenue, but would be considered as Budget revenue under IMF reporting standards. In other words, we may then be under reporting the Budget surplus.
Posted on: Tue, 16 Jul 2013 06:09:28 +0000
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