Singapore’s gross national debt is 6th highest in the world but no one is batting an eyelid.The Singapore Government has a strong balance sheet, with assets well in excess of its liabilities. The country has a net debt-to-GDP ratio of 0%. (i.e. no net debt). Singapore is, in fact, a net creditor country. It borrows to invest, not to spend.
That its assets far outweigh its liabilities can be seen in the NIRC (Net Investment Returns Contribution) taken into the budget for spending each year. If the Government’s assets had not been adequate to meet its liabilities, there would be no NIRC to fund the Government Budget.
#creditrating #liabilities #nationaldebt #NIRC
https://sgmatters.com/singapores-gross-national-debt-is-6th-highest-in-the-world-but-no-one-is-batting-an-eyelid/
