SINGAPORE (BERNAMA) – Singapore is budgeting for a “small surplus” of SGD0.8 billion for the financial year 2024, or 0.1 per cent of the country’s gross domestic product (GDP), which is essentially a balanced fiscal position, said Deputy Prime Minister and Finance Minister Lawrence Wong.
“The overall stance is appropriate, as we are providing targeted support for households and businesses, even as the economy is projected to operate at around potential,” he said delivering the 2024 Budget Statement on Thursday in Parliament.
According to an annex released to the media, the operating revenue for 2024 is estimated at SGD108.64 billion.
The estimated total expenditure is SGD111.76 billion, made up of operating expenditure of SGD88.43 billion and development expenditure of SGD23.33 billion.
For the financial year 2023, Wong said the country’s revenue collections were better than expected, mainly due to higher corporate income tax collections.
“Accounting for both our revenue upside and higher spending, we expect to end the financial year 2023 with a deficit of SGD3.6 billion, or 0.5 per cent of GDP,” he said.
For 2024, Wong said the outlook is mixed.
“Growth in the major economies is expected to be resilient. But geopolitical risks continue to loom large. These conflicts can lead to disruptions in global energy markets and supply chains,” he warned.
Fortunately, Wong said there are some upsides.
“Global inflationary pressures are expected to recede further. This provides some room for the major central banks to adopt more accommodative stances, which may ease financial conditions and support demand.
“The global electronics industry is projected to recover. This will bolster the growth of many regional economies, including our key trading partners,” he added.
Wong said Asia continues to be a key driver of global growth, with a wider spread of opportunities, not just in China, but also in India and many parts of Southeast Asia.
“On the whole, we are cautiously optimistic that 2024 will be a better year. Besides lower inflation, we expect higher GDP growth at one to three per cent,” he said.
