Not spending a single cent on healthcare and CPF?
The recently published CPF statistics by the CPF Board and the Budget expenditure (revised for FY2013) indicate that the Government continues – from a cashflow perspective – to be not spending a single cent on healthcare and CPF.
Healthcare
Estimated total annual contributions to Medisave – $8 billion (Total CPF contributions to all accounts (OA, SA and Medisave) in 2013 was $28.53 billion)
Estimated 4.25% interest (4% plus extra 1% on 1st $60,000 of Medisave, Special and Ordinary accounts) on total Medisave accounts’ balance of $65.6 billion – $2.8 billion
Total inflows: $10.8 billion
Government expenditure on healthcare (total operating and development expenditure) – $7.12 billion
Medisave Scheme withdrawals (includes withdrawals for hospitalisations, approved chronic illnesses, ElderShield premiums and Integrated Shield Plans’ premiums) – $1.56 billion
MediShield Scheme (premiums) – $817.6 million
Medifund payouts – $102 million
Pioneer Generation Package 1st year costs – $260 million
Total outflows: $9.76 billion
You can see from the above that total healthcare inflows of $10.8 billion (estimated) exceed the total healthcare outflows of $9.76 billion.
Total contributions 2013 – $28.53 billion
Total withdrawals 2013 – $14.86 billion
Total members’ balance – $252.97 billion
Since all CPF monies are the members’ contributions – the Government from a cashflow perspective – does not spend a single cent on our CPF system.
Leong Sze Hian
