SINGAPORE, Feb 18 – Singapore’s budget remains expansionary to support its economy for the financial year 2022 and the republic expects an overall deficit of S$3 billion or 0.5 per cent of its Gross Domestic Product (GDP).
It was lower than the expected overall deficit of S$5 billion or 0.9 per cent of GDP in 2021.
This was according to the republic’s Minister for Finance Lawrence Wong who delivered the Singapore Government’s Budget Statement for the financial year 2022 in Parliament today.
In an annex released to the media, the operating revenue for 2022 is estimated to be at S$81.75 billion as against the estimated total expenditure of S$102.41 billion.
For Budget 2022, Singapore sets out four key plans namely to invest in new capabilities; advance green transition; renew and strengthen social compact; and develop a fairer and more resilient revenue structure.
“In order to meet new spending needs, besides raising revenue, we will continue to manage our expenditure growth,” said Wong.
Since the financial year 2017, Wong said the republic has implemented a 2.0 per cent cut in the budgets of all ministries and organs of state to ensure it spends judiciously and achieve good value-for-money outcomes.
From the financial year 2023, he said it will apply a further 1.0 per cent cut to the budgets of ministries and organs of state.
“Funds from this adjustment will be channelled towards new priorities,” he said.
Wong also revealed that the total expected draw on Past Reserves over the financial year 2020 to 2022 will be up to S$42.9 billion, less than the initial draw of S$52 billion that the Singapore President originally agreed to for the financial year 2020.
“It reflects our prudence in the use of Past Reserves,” he said. — Bernama