Oral Answer by Ministry of National Development on HDB's deficit
Jan 20, 2015
Ms Foo Mee Har: To ask the Minister for National Development:-
(a) what implication does HDB's net deficit of $1.97 billion in FY13/14 have for Singapore; and
(b) whether this deficit trend will escalate in the future years.
Answer:
HDB’s deficit is the outcome of Government policies to provide Singaporeans with good, affordable public housing, and quality living environments in HDB towns.
HDB’s deficit is largely due to the subsidy extended to buyers of new flats and the disbursement of CPF Housing Grants to eligible buyers of resale flats. The spike in HDB’s deficit in FY2013 was due to HDB’s ramp-up in its flat-building and upgrading programmes. The deficit will remain high in the next few years, as flats launched in the ramp-up- phase are progressively completed and handed over.
For future years, the deficit level will depend on several factors such as housing demand, HDB’s building and upgrading programmes, as well as development costs and policy changes. HDB will continue to use its allocated resources judiciously to provide affordable and quality homes for Singaporeans.