Budget Adjustments and Economic Projections
Singapore’s fiscal stance for FY24 reflects a balanced approach to economic growth, infrastructure investment, and social development. The government remains cautiously optimistic about GDP growth while managing fiscal policies to sustain long-term economic stability.
Fiscal Position Overview
The FY24 Budget begins on April 1, 2024, with a fiscal impulse projected at 0.1% of GDP. The government’s operating revenue is expected to increase due to higher Goods and Services Tax (GST) collections, alongside S$23.5 billion from invested reserves managed by GIC and Temasek.
Key Budget Figures (S$B)
Category
FY23
FY24
Change
Operating Revenue
104.3
108.6
+4.2%
Total Expenditure
106.9
111.8
+4.6%
Primary Balance
(2.6)
(3.1)
Special Transfers
27.2
23.3
-14.3%
Net Investment Returns Contribution (NIRC)
22.9
23.5
+2.6%
Overall Budget Balance
(6.8)
(2.9)
Infrastructure Capitalisation
3.5
4.1
+17.1%
Borrowing Costs
0.2
0.4
+78.3%
Overall Fiscal Position
(3.6)
0.8
—
Budget Balances and Economic Impact
Primary balance (operating revenue minus total expenditure) remains in deficit, indicating higher spending relative to tax revenues.
Overall budget balance is improved from (6.8B) in FY23 to (2.9B) in FY24, aided by investment returns.
Infrastructure spending is increasing to support future economic growth under the Significant Infrastructure Government Loan Act (Singa).
Revenue Sources and Growth Trends
Total cash inflows (S$132.1B) are set to grow by 3.9%, driven mainly by GST hikes and strong corporate tax contributions. The NIRC remains the second-largest source of revenue.
Category
Amount (S$B)
% Total
Y-O-Y % Change
NIRC
23.5
17.8%
+2.6%
Operating Revenue
108.6
82.2%
+4.2%
Corporate Income Tax
28.0
21.2%
-1.2%
Goods & Services Tax (GST)
19.4
14.7%
+18.5%
Personal Income Tax
18.1
13.7%
+3.1%
Other Taxes
8.9
6.7%
+0.9%
Expenditure Breakdown and Sectoral Focus
Total outflows (S$111.8B) will rise 6.6%, driven by social development and infrastructure.
Sector
Amount (S$B)
% Total
Y-O-Y % Change
Social Development
56.1
50.2%
+5.6%
Health
18.8
16.8%
+4.6%
Education
14.8
13.2%
+4.8%
Transport
14.2
12.7%
+9.8%
Defence
20.3
18.1%
+2.5%
Economic Development
22.4
20.0%
+2.5%
Key Developments:
Education & Training: New Institute of Technical Education (ITE) Progression Award and mid-career training incentives.
Digital Governance: The Smart Nation and Digital Government Group has merged with the Ministry of Communication and Information.
Infrastructure: Increased funding for long-term projects under Singa, ensuring future growth sustainability.
Conclusion
The FY24 Budget reflects a cautious yet progressive approach to fiscal management, balancing economic growth, social welfare, and infrastructure investment. While the primary balance remains in deficit, the improved overall fiscal position (0.8B surplus) demonstrates Singapore’s resilience and strategic planning for long-term sustainability
