Why dont we increase the NIRC instead?
The Net Investment Returns Contribution (NIRC) framework is part of a larger sustainable fiscal system.
The framework balances between the needs of today and tomorrow. It underscores the Government’s commitment to continue growing our reserves, while allowing the Government to tap on part of the investment income for current spending.
If we spend more from NIRC today, we would effectively be reducing the reserves available for future use, which might result in higher taxes in the future or reduced expenditure for our future needs.
Find out more about NIRC.
Related questions
Why don't we spend more of the investment returns, since the reserves are growing?
How do Singaporeans benefit from the investment returns from our reserves?
Do Singaporeans benefit from the Investment Returns of GIC and Temasek?
How does the Net Investment Returns (NIR) framework ensure that the investment returns are tapped for spending in a disciplined and prudent way?
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