---
id: sgfact.mof.nirc-spending-cap
kind: fact
title: "How the Net Investment Returns Contribution (NIRC) Is Capped"
url: https://ik.sg/en/knowledge/fact/sgfact.mof.nirc-spending-cap
language: en
evidence_status: verified
collection_as_of: 2026-11-04
---

# How the Net Investment Returns Contribution (NIRC) Is Capped

MOF's NIRC explanation (last updated 22 October 2025) defines the two components and their separate caps; this is a constitutional spending framework, not a claim that the Budget receives exactly 50% of any single year's actual returns.

## Record details

- **Value:** The annual Net Investment Returns Contribution (NIRC) comprises up to 50% of Net Investment Returns on net assets invested by GIC, MAS and Temasek, plus up to 50% of Net Investment Income derived from past reserves from remaining assets. The Net Investment Returns component uses expected long-term real returns, including capital gains, rather than that year's actual investment returns.
- **Status:** verified
- **Relationship:** related-to
- **Subject:** [Ministry of Finance](https://ik.sg/en/knowledge/entity/sg.agency.mof)
- **Value type:** string

## Sources

- [https://www.mof.gov.sg/policies/reserves/net-investment-returns-contribution/](https://www.mof.gov.sg/policies/reserves/net-investment-returns-contribution/) — Accessed 2026-10-20

## Explore connections

- Topics: [Ministry of Finance](https://ik.sg/en/knowledge/topic/sgtopic.government.ministry-of-finance)
- People & organisations: [Ministry of Finance](https://ik.sg/en/knowledge/entity/sg.agency.mof)

Dates describe this record’s own period and applicability. A verification date does not mean a rule is currently in force. An expanding collection. Published counts show available knowledge, not complete coverage of Singapore.