Finance Minister explains the rationale behind setting aside funds for future spending
In his speech on the final day of the Budget 2024 debate, Finance Minister Lawrence Wong stressed the importance of setting aside funds for future expenditures to ensure that Singapore can meet “real commitments and real spending needs.” The government is currently in a strong fiscal position, partly due to recent tax changes and better-than-expected revenue collections, he noted.
Wong highlighted that while Singapore’s government funds address immediate concerns, they are also geared towards long-term projects such as the Future Energy Fund, aimed at decarbonizing the nation’s energy system. The government’s approach ensures that expenditures are properly funded and accounted for, in contrast to countries that make significant commitments without securing the necessary resources. However, Wong also cautioned that the era of structural fiscal surpluses is coming to an end, with slowing growth and a challenging investment environment. He emphasized the need to carefully manage expenditures to maintain balanced budgets through the end of the decade.
