Singapore Budget builds prudently for the future

SINGAPORE – Singapore’s FY2018 budget has focussed on addressing long-term challenges for the country and maintaining fiscal sustainability at the same time. It addresses four key issues: (1) meeting the challenges of an ageing society; (2) growing Singapore’s stature as a smart city; (3) enhancing competitiveness; and (4) ensuring a sound fiscal position.

The FY2017 budget is forecast to deliver a surplus of SGD9.6bn (2.1% of GDP) owing to higher-than-projected contributions from Statutory Boards.

Nonetheless, ANZ Bank says in a research note, because this surplus is not considered as structural by the Government, taxes have been raised in several areas.

The Government also unveiled its intention to raise the GST to 9% from 7% between 2021 and 2025.  www.live.anz.com (ATI).