A Planned Surplus of S$778 Million Despite Expansionary Stance
In the 2024 Singapore Budget, Finance Minister Lawrence Wong announced a planned fiscal surplus of S$778 million, marking the first surplus in seven years. This surplus represents about 0.1% of Singapore’s GDP and reflects the government’s ongoing efforts to address rising expenditure while maintaining an expansionary fiscal stance.
The surplus comes despite a basic deficit of S$6.1 billion, primarily due to increased government spending on transport, healthcare, and other essential sectors. Operating revenue is expected to increase by 4.2%, driven by higher tax collections, especially from GST and property taxes. Meanwhile, total expenditure is projected to rise by 4.6%, with significant increases in transport and healthcare budgets.
The surplus has led some economists to speculate that the government may call a general election in 2024, taking advantage of a balanced fiscal position before the next election due in 2025.
