in which the private sector can thrive and remain competitive, i.e., byreducing costs and taxes, enhancing capabilities, raising technology lev-els, and promoting manufacturing and services.The Governments long-term target is to contain expenditure withinoperating revenue and run a modest budget surplus.The island city-state is one of the strongest economies in Asia,posting many years of strong growth since independence, and losingsteam only in two years (1985, when it su¬ered a recession, and 1998,when, along with the other economies in the region, it was mildly a¬ectedby the Asian bugironically due to its relatively strong currency, whicheroded its competitiveness).The Government has enjoyed huge scal surpluses and substantialreserves for many years, with revenue from 1986 generally at around 22percent of GDP, except in 1998 and 1999, when this dropped to 19percent and 17 percent. Nevertheless, budget surpluses of S$3.4 billionand S$3.2 billion, respectively, were still attained in these two years.Operating expenditures have been maintained at no more than 11 per-cent of GDP. As shown in Table 1, the surpluses have mainly been theresult of buoyant revenues and prudent expenditure.
TABLE 1Government Revenue and Expenditure
(S$ million, percent of GDP)OperatingDevelopmentOperating Revenue
Surplus/DecitYearS$% ofS$% ofS$% ofS$% of millionNominalmillionNominalmillionNominalmillionNominalGDPGDPGDPGDP199013,340.421.07,435.011.73,356.45.32,549.04.0199115,697.422.38,173.511.63,601.05.13,922.95.6199217,772.421.98,512.310.53,649.14.55,611.06.9199320,655.522.49,001.29.83,894.84.27,759.58.4199423,713.221.910,071.99.33,971.23.79,670.18.9199525,254.820.211,448.99.25,961.54.87,844.46.2199628,929.721.814,158.710.79,127.76.05,643.34.2199729,181.420.014,079.79.789,963.06.26,138.74.1199828,212.519.114,236.49.710,557.17.23,419.02.3
Nominal gures. inancial year: 1 April to 31 March;
Operating revenue includes taxrevenue, fees and charges and others;
Operating expenditures includes expenditure onmanpower, other operating expenditure, grants-in-aid and pensions;
Development expen-diture includes government expenditure, capital grants and public housing.
:Singapore: the Budget for the inancial Year.