Singapore’s Budget in the 13th Parliament
Deputy Prime Minister Heng Swee Keat recently noted that the country’s annual budget is around $80 billion. The table below shows the annual budget allocation for this term of government, as well as its expenditure.
SOURCE: MINISTRY OF FINANCE
Until 2020, the government used taxes and NIRC to fund their expenditure. For FY2020, Mr Heng sought the President's approval to use S$52 billion of the Past Reserves to fund government programmes.
This is where resources will be spent in this financial year.
SOURCE: MINISTRY OF FINANCE, PARLIAMENT OF SINGAPORE
A total of $23.5 billion will be spent on the Job Support Scheme, which takes up around 25 per cent of the $92.9 billion allocated. A breakdown of the fiscal allocation of the Past Reserves this year can be found below.
SOURCE: MINISTRY OF FINANCE
Adding up the Finance Ministry's overall budget allocation and the supplementary budgets, the government is expected to spend at least $173.93 billion in FY2020, twice as much as the annual budgets in previous years of its term. Mr Heng said the overall spending for FY2020 will be S$193 billion.
Class Notes also looks at the budget allocation for other years in this term of Parliament, as well as the policies and programmes introduced.
Key considerations: Building a spirit of partnership by working with citizens, transforming the economy through enterprise and deeper innovation and building a caring and resilient society
In 2016, Temasek was added into Singapore's Net Investment Returns framework — which funds the government's annual spending — and the framework became the government's largest revenue contributor for the first time.
New programmes: Industry Transformation Maps, Adapt and Grow initiative, TechSkills Accelerator, Child Development Account, First Step grant, KidSTART, National Outdoor Adventure Education Masterplan, new Outward Bound Singapore campus at Coney Island, Business and IPC Partnership Scheme
New funds: Our Singapore Fund
Key considerations: Developing capabilities for firms and workers with emphasis on digitalisation and innovation, as well as forging deep partnerships in economy
New programmes: Third Enabling Masterplan, Attach and Train Initiative, SMEs Go Digital Programme, Tech Access Initiative, Global Innovation Alliance, SkillsFuture Leadership Development Initiative
Enhancements: Increase capacity of centre-based infant care, increase bursaries for Post-Secondary Education Institutions students
New funds: Public Sector Construction Productivity Fund
Tax policies: Carbon tax in 2019
Off-budget announcements and new programmes: SG Cares Movement and Cities of Tomorrow R&D Programme by Ministry of National Development
Key considerations: Prepare for further investment in Asia's economy, managing Industrial Revolution 4.0 and tackling social issues from ageing
New programmes: Aviation Transformation Programme, Maritime Transformation Programme, National Research Foundation-Temasek IP Commercialisation Vehicle, National Robotics Programme, ASEAN Leadership Programme, SBF-SMU LEAD-CHARGE Initiative and Capability Transfer Programme
New institutions: Singapore Manufacturing Innovation Centre in Guangzhou, China
Tax policies: GST hike sometime between 2021 and 2025, to 9 per cent; water tariffs increased by 30 per cent.
Off-budget announcements and new programmes: $100 billion commitment to tackle climate change, which was announced during the National Day Rally
Key considerations: Declining support for globalisation, support for healthcare, economy, inequality and climate change
New programmes and policies: Merdeka Generation Package, one-time SG bicentennial bonus, Scale-up SG programme, Innovation Agents programme, Digital Defence added as an additional pillar for Total Defence, Bicentennial Bonus
New institutions: Home Team Science and Technology Agency, Centre of Innovation in Aquaculture at Temasek Polytechnic, Centre of Innovation in Energy at NTU
Enhancements: Various Community Health Assist Scheme (CHAS) enhancements, improve ElderShield scheme to CareShield Life
New funds: SME Co-Investment Fund III, ElderFund, Merdeka Generation Fund, Bicentennial Community Fund
Other moments: Finance Minister Heng Swee Keat appointed as Deputy Prime Minister