With Reserves Management Government Securities (RMGS) and hence not having to draw down on Government Deposits (GDs), can the Government offset planned tax increases?

mof

Last updated 1y ago

The amount of Government Deposits (GDs) available does not determine the amount of budget available for the Government's spending. The Government's overall expenditure is bounded by its overall revenues (and NIRC) and the current reserves accumulated during its term. This limit is determined by our Constitutional rules to ensure fiscal prudence, and is not determined by how much deposits the Government has with the central bank.

Let other citizens know if this answer was helpful

Did this answer your question?

Can’t find what you’re looking for?

With Reserves Management Government Securities (RMGS) and hence not having to draw down on Government Deposits (GDs), can the Government offset planned tax increases?

Related Questions

Is the Government issuing Reserves Management Government Securities (RMGS) to bolster its reserves?

Why is the presentation format of the Government Budget different from the government finance data reported in the Yearbook of Statistics?

Is MAS financing government expenditure by subscribing for Reserves Management Government Securities (RMGS)?

Will RMGS increase the amount of Net Investment Returns Contribution (NIRC) available for spending? Can this offset planned tax increases?