Sinking Funds of Town Councils

The government has announced the following measures:

1. Town councils can invest in non-government investment vehicles up to a cap of 35 percent
2. The aim is to strike a balance between getting a good return and not taking unnecessary risks.

Inflation hit a 16-year high recently at 3.6 percent and is expected to hit 4.5 or 5 percent next year. Government bonds and short-term fixed deposits give a return of around 1.5 to 3 percent which is lower than the returns from riskier market investments.