Returns from sovereign wealth funds make up most of government revenues.
The contributions from the Net Investment Returns Contribution (NIRC) framework is expected to rise more than 4% in the fiscal 2019 budget to $17.2b from $16.4b in 2018, according to a Moody’s report.
Singapore’s sovereign wealth funds, Temasek Holdings and GIC, accounted for most of the government’s revenues through its contribution to the Net Investment Returns Contribution (NIRC) framework.
Together with the MAS, Moody’s noted, these funds manage the government's large fiscal reserves, derived in part from past budgetary surpluses and ongoing proceeds from land sales.
“Given the SWFs' stable long-term financial returns, Singapore's fiscal buffers are likely to be well above the stock of outstanding government debt,” the report added.
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